Trade Alert: Alan Smith At Graham Corporation (NYSE:GHM), Has Just Spent US$73k Buying 16% More Shares
Even if it's not a huge purchase, we think it was good to see that Alan Smith, a Graham Corporation (NYSE:GHM) insider, recently shelled out US$73k to buy stock, at US$9.10 per share. That purchase might not be huge but it did increase their holding by 16%.
View our latest analysis for Graham
The Last 12 Months Of Insider Transactions At Graham
Over the last year, we can see that the biggest insider sale was by the VP of Finance & Administration, Jeffrey Glajch, for US$224k worth of shares, at about US$16.04 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$9.28. So it may not tell us anything about how insiders feel about the current share price. Jeffrey Glajch was the only individual insider to sell shares in the last twelve months.
Happily, we note that in the last year insiders paid US$319k for 33.10k shares. But insiders sold 18.69k shares worth US$291k. Overall, Graham insiders were net buyers during the last year. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Graham insiders own 7.8% of the company, worth about US$7.7m. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Graham Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Graham insiders are reasonably well aligned, and optimistic for the future. 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 4 warning signs for Graham that deserve your attention before buying any shares.
But note: Graham 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, but not derivative transactions.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
