- Oops!Something went wrong.Please try again later.
Carriage Services, Inc. (NYSE:CSV) shareholders (or potential shareholders) will be happy to see that the Founder, Melvin Payne, recently bought a whopping US$871k worth of stock, at a price of US$30.02. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 2.3%.
The Last 12 Months Of Insider Transactions At Carriage Services
Notably, that recent purchase by Melvin Payne is the biggest insider purchase of Carriage Services shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$29.71). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. We note that Melvin Payne was also the biggest seller.
Over the last year, we can see that insiders have bought 56.43k shares worth US$1.4m. But insiders sold 29.74k shares worth US$483k. In the last twelve months there was more buying than selling by Carriage Services insiders. They paid about US$24.31 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Carriage Services is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Carriage Services 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Carriage Services insiders own about US$50m worth of shares. That equates to 9.4% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Carriage Services Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Carriage Services insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 3 warning signs for Carriage Services (1 makes us a bit uncomfortable) you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email email@example.com.