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Despite the fact that Emerson Electric Co.'s (NYSE:EMR) value has dropped 13% in the last week insiders who sold US$10m worth of stock in the past 12 months have had less success. The average selling price of US$129 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Emerson Electric Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the President, Surendralal Karsanbhai, for US$6.8m worth of shares, at about US$131 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$94.57. 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!
See our latest analysis for Emerson Electric
I will like Emerson Electric better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insiders At Emerson Electric Have Sold Stock Recently
Over the last three months, we've seen 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.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Emerson Electric insiders own 0.3% of the company, worth about US$200m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Emerson Electric Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Of course, the future is what matters most. So if you are interested in Emerson Electric, you should check out this free report on analyst forecasts for the company .