Independent Director Roel Campos Just Bought 13% More Shares In Regional Management Corp. (NYSE:RM)
Investors who take an interest in Regional Management Corp. (NYSE:RM) should definitely note that the Independent Director, Roel Campos, recently paid US$23.36 per share to buy US$199k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 13%.
Check out our latest analysis for Regional Management
The Last 12 Months Of Insider Transactions At Regional Management
Notably, that recent purchase by Roel Campos is the biggest insider purchase of Regional Management shares that we've seen in the last year. That implies that an insider found the current price of US$26.00 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months insiders purchased 57.00k shares for US$797k. On the other hand they divested 3.35k shares, for US$110k. In the last twelve months there was more buying than selling by Regional Management insiders. They paid about US$13.97 on average. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Regional Management Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Regional Management insiders own 7.0% of the company, worth about US$21m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Regional Management Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Regional Management insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Regional Management. For example, Regional Management has 5 warning signs (and 1 which is concerning) we think you should know about.
Of course Regional Management may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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