It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Embecta Corp.'s (NASDAQ:EMBC) case, it's fantastic news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Embecta

Embecta Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by President Devdatt Kurdikar for US$109k worth of shares, at about US$21.81 per share. That means that an insider was happy to buy shares at above the current price of US$10.15. 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months Embecta insiders were buying shares, but not selling. They paid about US$19.59 on average. This is nice to see since it implies that insiders might see value around current prices. 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!

Embecta is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At Embecta Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Embecta. Independent Non-Executive Chairman David Melcher shelled out US$33k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Does Embecta 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. Our data indicates that Embecta insiders own about US$6.8m worth of shares (which is 1.2% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Embecta Insider Transactions Indicate?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Embecta insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Embecta. At Simply Wall St, we've found that Embecta has 5 warning signs (2 are a bit unpleasant!) that deserve your attention before going any further with your analysis.

Of course Embecta may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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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.