Potential Regional Management Corp. (NYSE:RM) shareholders may wish to note that the President, Lakhbir Lamba, recently bought US$316k worth of stock, paying US$31.65 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 22%.

The Last 12 Months Of Insider Transactions At Regional Management

Over the last year, we can see that the biggest insider sale was by the Director, Michael Dunn, for US$375k worth of shares, at about US$37.46 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$33.50. So it may not tell us anything about how insiders feel about the current share price.

All up, insiders sold more shares in Regional Management than they bought, over the last year. 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!

I will like Regional Management better if I see some big insider buys.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Regional Management insiders own 9.9% of the company, worth about US$30m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Regional Management Insiders?

The recent insider purchase is heartening. However, the longer term transactions are not so encouraging. While recent transactions indicate confidence in Regional Management, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. In short they are likely aligned with shareholders. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Regional Management has 1 warning sign and it would be unwise to ignore it.

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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.