Trade Alert: The Independent Chairman Of Electromed, Inc. (NYSEMKT:ELMD), Stephen Craney, Has Just Spent US$86k Buying Shares
Whilst it may not be a huge deal, we thought it was good to see that the Electromed, Inc. (NYSEMKT:ELMD) Independent Chairman, Stephen Craney, recently bought US$86k worth of stock, for US$8.60 per share. However, we do note that it only increased their holding by 1.8%, and it wasn't a huge purchase by absolute value, either.
See our latest analysis for Electromed
The Last 12 Months Of Insider Transactions At Electromed
Notably, that recent purchase by Stephen Craney is the biggest insider purchase of Electromed shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$7.00). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Stephen Craney was the only individual insider to buy shares in the last twelve months.
You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Electromed 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.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Electromed insiders own 22% of the company, worth about US$13m. 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 Electromed Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Insiders likely see value in Electromed shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Electromed that deserve your attention before buying any shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.
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