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Even if it's not a huge purchase, we think it was good to see that Robert Culp, the President of Culp, Inc. (NYSE:CULP) recently shelled out US$69k to buy stock, at US$4.94 per share. However, it only increased their shares held by 3.9%, and it wasn't a huge purchase by absolute value, either.
View our latest analysis for Culp
Culp Insider Transactions Over The Last Year
Notably, that recent purchase by President Robert Culp was not the only time they bought Culp shares this year. They previously made an even bigger purchase of US$92k worth of shares at a price of US$5.71 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$5.14). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for 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.
In the last twelve months Culp insiders were buying shares, but not selling. 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!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Culp
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. Insiders own 8.1% of Culp shares, worth about US$5.2m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Culp Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Culp insiders are expecting a bright future. While it's good to be aware of 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. You'd be interested to know, that we found 1 warning sign for Culp and we suggest you have a look.