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Even if it's not a huge purchase, we think it was good to see that Frederick DiSanto, the Independent Director of The Eastern Company (NASDAQ:EML) recently shelled out US$91k to buy stock, at US$18.19 per share. Although the purchase is not a big one, increasing their shareholding by only 9.7%, it can be interpreted as a good sign.
Check out our latest analysis for Eastern
The Last 12 Months Of Insider Transactions At Eastern
Notably, that recent purchase by Independent Director Frederick DiSanto was not the only time they bought Eastern shares this year. Earlier in the year, they paid US$16.39 per share in a US$123k purchase. Even though the purchase was made at a significantly lower price than the recent price (US$18.29), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
While Eastern insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Eastern 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.
Does Eastern Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Eastern insiders own 6.5% of the company, worth about US$7.4m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Eastern Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Eastern stock. 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. Every company has risks, and we've spotted 2 warning signs for Eastern (of which 1 is concerning!) you should know about.