Anyone interested in RCM Technologies, Inc. (NASDAQ:RCMT) should probably be aware that the Division President of Health Care Services, Michael Saks, recently divested US$411k worth of shares in the company, at an average price of US$41.07 each. That sale was 12% of their holding, so it does make us raise an eyebrow.

RCM Technologies Insider Transactions Over The Last Year

Notably, that recent sale by Michael Saks is the biggest insider sale of RCM Technologies shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$40.86. While we don't usually like to see insider selling, it's more concerning if the sales take place 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).

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

Insider Ownership Of RCM Technologies

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. RCM Technologies insiders own 35% of the company, currently worth about US$102m 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 RCM Technologies Insiders?

An insider sold RCM Technologies shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, RCM Technologies makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

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.

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.