25-05-2025
Independent Non-Executive Chairman of Embecta Picks Up 13% More Stock
Investors who take an interest in Embecta Corp. (NASDAQ:EMBC) should definitely note that the Independent Non-Executive Chairman, David Melcher, recently paid US$10.60 per share to buy US$106k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 13%.
We've discovered 3 warning signs about Embecta. View them for free.
Notably, that recent purchase by Independent Non-Executive Chairman David Melcher was not the only time they bought Embecta shares this year. Earlier in the year, they paid US$13.67 per share in a US$178k purchase. That means that even when the share price was higher than US$10.72 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. David Melcher was the only individual insider to buy shares in the last twelve months.
David Melcher bought a total of 23.00k shares over the year at an average price of US$12.33. 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!
View our latest analysis for Embecta
Embecta is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
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. Embecta insiders own about US$12m worth of shares. That equates to 2.0% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in Embecta shares, given these transactions (along with notable insider ownership of the company). 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. Every company has risks, and we've spotted 3 warning signs for Embecta (of which 2 don't sit too well with us!) you should know about.
But note: Embecta may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.
