We'd be surprised if RCM Technologies, Inc. (NASDAQ:RCMT) shareholders haven't noticed that the Division President of Health Care Services, Michael Saks, recently sold US$235k worth of stock at US$23.50 per share. On the bright side, that sale was only 8.8% of their holding, so we doubt it's very meaningful, on its own.

The Last 12 Months Of Insider Transactions At RCM Technologies

In fact, the recent sale by Michael Saks was the biggest sale of RCM Technologies shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$23.98. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Michael Saks divested 15.00k shares over the last 12 months at an average price of US$24.76. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does RCM Technologies Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 26% of RCM Technologies shares, worth about US$49m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The RCM Technologies Insider Transactions Indicate?

An insider sold RCM Technologies shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since RCM Technologies is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing RCM Technologies. Case in point: We've spotted 3 warning signs for RCM Technologies you should be aware of, and 2 of them make us uncomfortable.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.