Regional Management Corp. (NYSE:RM) insider upped their holding by 361% earlier this year
Insiders were net buyers of Regional Management Corp.'s (NYSE:RM ) stock during the past year. That is, insiders bought more stock than they sold.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Regional Management
Regional Management Insider Transactions Over The Last Year
The Independent Director Philip Bancroft made the biggest insider purchase in the last 12 months. That single transaction was for US$509k worth of shares at a price of US$39.90 each. That means that even when the share price was higher than US$26.96 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Philip Bancroft was the only individual insider to buy shares in the last twelve months.
Philip Bancroft purchased 26.00k shares over the year. The average price per share was US$39.02. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Regional Management is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Regional Management insiders own about US$19m worth of shares. That equates to 7.5% 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 Regional Management Tell Us?
The fact that there have been no Regional Management insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Regional Management and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Regional Management. Case in point: We've spotted 3 warning signs for Regional Management you should be aware of, and 1 of them can't be ignored.
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.
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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.
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