Posted on August 7, 2023
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD), that sends out a positive message to the company’s 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 Great Lakes Dredge & Dock
Great Lakes Dredge & Dock Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO, President & Director Lasse Petterson for US$97k worth of shares, at about US$9.65 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being US$9.45). 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.
Great Lakes Dredge & Dock insiders may have bought shares in the last year, but they didn’t sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
NasdaqGS:GLDD Insider Trading Volume August 2nd 2023
Great Lakes Dredge & Dock is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Great Lakes Dredge & Dock Boast High Insider Ownership?
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. It appears that Great Lakes Dredge & Dock insiders own 2.4% of the company, worth about US$15m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Great Lakes Dredge & Dock Tell Us?
It doesn’t really mean much that no insider has traded Great Lakes Dredge & Dock shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Great Lakes Dredge & Dock and their transactions don’t cause us concern. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Great Lakes Dredge & Dock that deserve your attention before buying any shares.
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.
