Montrose Environmental Group Insiders Enjoying US$304k Appreciation On US$1.65m Investment
Montrose Environmental Group, Inc. (NYSE:MEG) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 28% resulting in a US$274m addition to the company’s market value. Put another way, the original US$1.65m acquisition is now worth US$1.95m.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Montrose Environmental Group
Montrose Environmental Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director James Price for US$1m worth of shares, at about US$37.00 per share. We do like to see buying, but this purchase was made at well below the current price of US$41.38. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Montrose Environmental Group insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Montrose Environmental Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Montrose Environmental Group 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 7.7% of Montrose Environmental Group shares, worth about US$76m. 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 Montrose Environmental Group Tell Us?
It doesn't really mean much that no insider has traded Montrose Environmental Group shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Montrose Environmental Group and their transactions don't cause us concern. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 1 warning sign for Montrose Environmental Group that deserve your attention before buying any shares.
But note: Montrose Environmental Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
