Yahoo Finance Insider Stock Buying Reaches US$2.11m On Emerson Electric
Over the last year, a good number of insiders have significantly increased their holdings in Emerson Electric Co. (NYSE:EMR). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
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.
See our latest analysis for Emerson Electric
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 Executive VP & COO, Ram Krishnan, sold US$1.2m worth of shares at a price of US$96.09 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$110. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 7.9% of Ram Krishnan's stake.
In the last twelve months insiders purchased 24.40k shares for US$2.1m. But insiders sold 19.05k shares worth US$1.9m. In total, Emerson Electric insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership Of Emerson Electric
Many investors like to check how much of a company is owned by insiders. 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 about US$236m worth of shares (which is 0.4% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Emerson Electric Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Emerson Electric shares in the last quarter. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Emerson Electric insiders think the business has merit. 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 this 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.
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