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The President of CalAmp Corp. (NASDAQ:CAMP), Jeffery Gardner, Just Bought 4.3% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the CalAmp Corp. (NASDAQ:CAMP) President, Jeffery Gardner, recently bought US$83k worth of stock, for US$4.17 per share. However, it only increased their shares held by 4.3%, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for CalAmp

The Last 12 Months Of Insider Transactions At CalAmp

Notably, that recent purchase by President Jeffery Gardner was not the only time they bought CalAmp shares this year. They previously made an even bigger purchase of US$128k worth of shares at a price of US$5.35 per share. That means that even when the share price was higher than US$4.04 (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. To us, it's very important to consider the price insiders pay for shares. 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.

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CalAmp insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$4.81. 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

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

Insider Ownership Of CalAmp

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. Our data indicates that CalAmp insiders own about US$7.9m worth of shares (which is 5.3% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About CalAmp Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that CalAmp insiders are expecting a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 3 warning signs for CalAmp (of which 1 can't be ignored!) you should know about.

But note: CalAmp 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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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