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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Renasant Corporation's (NYSE:RNST) case, it's fantastic 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 do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Renasant
Renasant Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Executive Vice President Curtis Perry for US$244k worth of shares, at about US$24.50 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$29.80. 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.
Renasant insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Renasant 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
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Renasant insiders own about US$53m worth of shares. That equates to 3.1% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Renasant Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Renasant and we see no evidence to suggest they are worried about the future. Of course, the future is what matters most. So if you are interested in Renasant, you should check out this free report on analyst forecasts for the company.
But note: Renasant may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.