Even if it's not a huge purchase, we think it was good to see that Donald Ratajczak, the Independent Director of Crown Crafts, Inc. (NASDAQ:CRWS) recently shelled out US$50k to buy stock, at US$4.71 per share. However, it only increased their shares held by 4.3%, and it wasn't a huge purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At Crown Crafts
In fact, the recent purchase by Independent Director Donald Ratajczak was not their only acquisition of Crown Crafts shares this year. Earlier in the year, they paid US$4.70 per share in a US$59k purchase. That means that an insider was happy to buy shares at around the current price of US$4.76. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Crown Crafts share holders is that insiders were buying at near the current price.
Crown Crafts insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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 Crown Crafts
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. From our data, it seems that Crown Crafts insiders own 8.7% of the company, worth about US$4.2m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Crown Crafts Insider Transactions Indicate?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Crown Crafts insiders are expecting a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Crown Crafts has 3 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.
But note: Crown Crafts may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
