Quite a few insiders have dramatically grown their holdings in Columbus McKinnon Corporation (NASDAQ:CMCO) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Columbus McKinnon Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by President David Wilson for US$1.0m worth of shares, at about US$32.10 per share. We do like to see buying, but this purchase was made at well below the current price of US$38.53. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months insiders purchased 33.82k shares for US$1.1m. On the other hand they divested 9.07k shares, for US$349k. Overall, Columbus McKinnon insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Columbus McKinnon is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Columbus McKinnon Have Bought Stock Recently

Over the last quarter, Columbus McKinnon insiders have spent a meaningful amount on shares. Overall, two insiders shelled out US$1.0m for shares in the company -- and none sold. This makes one think the business has some good points.

Does Columbus McKinnon Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Columbus McKinnon insiders own about US$18m worth of shares. That equates to 1.6% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Columbus McKinnon Insiders?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Columbus McKinnon shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 3 warning signs for Columbus McKinnon (1 can't be ignored!) that we believe deserve your full attention.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.