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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Embecta Corp.'s (NASDAQ:EMBC) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Embecta
Embecta Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when President Devdatt Kurdikar bought US$109k worth of shares at a price of US$21.81 per share. That means that even when the share price was higher than US$15.17 (the recent price), an insider wanted to purchase shares. 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Embecta 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders At Embecta Have Bought Stock Recently
Over the last quarter, Embecta insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$409k worth of shares. That shows some optimism about the company's future.
Insider Ownership Of Embecta
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.0% of Embecta shares, worth about US$8.3m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Embecta 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 Embecta 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. To that end, you should learn about the 5 warning signs we've spotted with Embecta (including 2 which are significant).