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Viewing insider transactions for Embecta Corp.'s (NASDAQ:EMBC ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Embecta
The Last 12 Months Of Insider Transactions At Embecta
In fact, the recent purchase by David Melcher was the biggest purchase of Embecta shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of US$13.50. 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. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was David Melcher.
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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Embecta Insiders Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at Embecta. Independent Non-Executive Chairman David Melcher spent US$178k on stock. On the other hand, Independent Director Milton Morris netted US$51k by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Does Embecta Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$4.8m worth of Embecta stock, about 0.6% of the company. We prefer to see high levels of insider ownership.
So What Do The Embecta Insider Transactions Indicate?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Embecta insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Embecta. For example, Embecta has 4 warning signs (and 2 which don't sit too well with us) we think you should know about.