Potential Resources Connection, Inc. (NASDAQ:RGP) shareholders may wish to note that the Independent Director, Roger Carlile, recently bought US$127k worth of stock, paying US$5.06 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 60%, potentially signalling some real optimism.

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Resources Connection Insider Transactions Over The Last Year

In fact, the recent purchase by Independent Director Roger Carlile was not their only acquisition of Resources Connection shares this year. Earlier in the year, they paid US$11.25 per share in a US$281k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$5.20). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.

In the last twelve months insiders purchased 70.00k shares for US$511k. On the other hand they divested 11.65k shares, for US$131k. Overall, Resources Connection insiders were net buyers during the last year. The average buy price was around US$7.29. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Resources Connection

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Resources Connection insiders own about US$5.8m worth of shares (which is 3.4% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Resources Connection Tell Us?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. 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 Resources Connection stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Resources Connection. At Simply Wall St, we found 1 warning sign for Resources Connection that deserve your attention before buying any shares.

But note: Resources Connection 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.

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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.