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Over the past year, many Emerson Electric Co. (NYSE:EMR) insiders sold a significant stake in the company which may have piqued investors' interest. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Emerson Electric
In the last twelve months, the biggest single sale by an insider was when the President, Surendralal Karsanbhai, sold US$6.8m worth of shares at a price of US$131 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$108. So it may not shed much light on insider confidence at current levels.
Emerson Electric insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Emerson Electric
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Emerson Electric Insiders Are Selling The Stock
The last three months saw significant insider selling at Emerson Electric. In total, insiders dumped US$471k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Does Emerson Electric 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Emerson Electric insiders own 0.3% of the company, currently worth about US$212m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.