Viewing insider transactions for Emerson Electric Co.'s (NYSE:EMR ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Emerson Electric
Emerson Electric Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Senior VP, Lisa Flavin, for US$4.4m worth of shares, at about US$89.65 per share. So what is clear is that an insider saw fit to sell at around the current price of US$86.60. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). Lisa Flavin was the only individual insider to sell shares in the last twelve months.
In the last twelve months insiders purchased 11.00k shares for US$941k. But insiders sold 48.72k shares worth US$4.4m. 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!
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Insiders At Emerson Electric Have Bought Stock Recently
It's good to see that Emerson Electric insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought US$941k worth of shares. This is a positive in our book as it implies some confidence.
Insider Ownership Of Emerson Electric
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Emerson Electric insiders own 0.4% of the company, currently worth about US$183m 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.
So What Does This Data Suggest About Emerson Electric Insiders?
It's certainly positive to see the recent insider purchases. On the other hand the transaction history, over the last year, isn't so positive. The recent buying by some insiders , along with high insider ownership, suggest that Emerson Electric insiders are fairly aligned, and optimistic. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Emerson Electric. In terms of investment risks, we've identified 1 warning sign with Emerson Electric and understanding it should be part of your investment process.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
