Insider Buying: The CalAmp Corp. (NASDAQ:CAMP) President Just Bought 6.8% More Shares

·3 min read

Even if it's not a huge purchase, we think it was good to see that Jeffery Gardner, the President of CalAmp Corp. (NASDAQ:CAMP) recently shelled out US$97k to buy stock, at US$4.83 per share. Although the purchase is not a big one, increasing their shareholding by only 6.8%, it can be interpreted as a good sign.

View our latest analysis for CalAmp

CalAmp Insider Transactions Over The Last Year

In fact, the recent purchase by President Jeffery Gardner was not their only acquisition of CalAmp shares this year. Earlier in the year, they paid US$5.35 per share in a US$128k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$4.28). 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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While CalAmp insiders bought shares during the last year, they didn't sell. 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!

insider-trading-volume
insider-trading-volume

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 4.2% of CalAmp shares, worth about US$6.4m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About CalAmp Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on CalAmp stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 4 warning signs for CalAmp (of which 1 is potentially serious!) you should know about.

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, but not derivative transactions.

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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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