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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Rocky Mountain Chocolate Factory, Inc. (NASDAQ:RMCF), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
The Last 12 Months Of Insider Transactions At Rocky Mountain Chocolate Factory
The Chairman, Bryan Merryman, made the biggest insider sale in the last 12 months. That single transaction was for US$103k worth of shares at a price of US$10.33 each. So we know that an insider sold shares at around the present share price of US$9.51. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
We note that in the last year insiders divested 14500 shares for a total of US$150k. Rocky Mountain Chocolate Factory insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Rocky Mountain Chocolate Factory insiders own 11% of the company, worth about US$6.2m. We do generally prefer see higher levels of insider ownership.
So What Do The Rocky Mountain Chocolate Factory Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Rocky Mountain Chocolate Factory shares in the last quarter. The insider transactions at Rocky Mountain Chocolate Factory are not inspiring us to buy. And usually insiders own more stock in the company, according to our data. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
Of course Rocky Mountain Chocolate Factory may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.