Potential Regional Management Corp. (NYSE:RM) shareholders may wish to note that the President, Robert Beck, recently bought US$177k worth of stock, paying US$11.78 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 35%.
The Last 12 Months Of Insider Transactions At Regional Management
Over the last year, we can see that the biggest insider purchase was by Executive VP & COO John Schachtel for US$183k worth of shares, at about US$26.30 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$12.02). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 46.00k shares for US$877k. But they sold 3351 shares for US$110k. In total, Regional Management insiders bought more than they sold over the last year. Their average price was about US$19.07. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 5.8% of Regional Management shares, worth about US$7.8m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Do The Regional Management Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Regional Management insiders are expecting a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 3 warning signs for Regional Management (1 can't be ignored!) that we believe deserve your full attention.
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 firstname.lastname@example.org. 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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