Have Insiders Been Selling CalAmp Corp. (NASDAQ:CAMP) Shares This Year?
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We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in CalAmp Corp. (NASDAQ:CAMP).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Check out our latest analysis for CalAmp
The Last 12 Months Of Insider Transactions At CalAmp
Over the last year, we can see that the biggest insider sale was by Senior Vice President of Corporate Development Garo Sarkissian for US$152k worth of shares, at about US$20.35 per share. That is hardly a positive sign, even though it took place above the latest price (US$14.41). So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Garo Sarkissian.
Garo Sarkissian sold a total of 10.00k shares over the year at an average price of US$20.23. The chart below shows insider transactions (by 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!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does CalAmp Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. CalAmp insiders own about US$19m worth of shares. That equates to 4.2% of the company. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About CalAmp Insiders?
It doesn’t really mean much that no insider has traded CalAmp shares in the last quarter. Still, the insider transactions at CalAmp in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
