Jeffrey Geygan of Rocky Mountain Chocolate Factory, Inc. (NASDAQ: RMCF) just spent US $ 68,000 on a handful of stocks

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While not a huge buy, we think it was good to see that Jeffrey Geygan, a Rocky Mountain Chocolate Factory, Inc. (NASDAQ: RMCF) insider, recently shelled out US $ 68,000 to buy shares, at US $ 6.81 per share. While the purchase is not important, either as a percentage or as an absolute value, it can be seen as a good sign.

Check out our latest review for Rocky Mountain Chocolate Factory

The Last 12 Months of Insider Trading at Rocky Mountain Chocolate Factory

Notably, this recent buy by Jeffrey Geygan is the biggest insider buy of Rocky Mountain Chocolate Factory shares we’ve seen in the past year. While we love to see insider buys, we note that this large buy was significantly lower than the recent price of US $ 7.84. Since the shares were bought at a lower price, this particular purchase doesn’t tell us much about what insiders think about the current price of the share.

While Rocky Mountain Chocolate Factory insiders have bought shares over the past year, they haven’t sold. The chart below shows insider trading (by businesses and individuals) over the past year. By clicking on the graph below, you can see the precise detail of each insider trade!

NasdaqGM: RMCF Insider Trading Volume June 27, 2021

There are many other companies that have insiders who buy stocks. You probably do do not want to miss it free list of growing companies that insiders buy.

Does the Rocky Mountain Chocolate Factory pride itself on strong insider ownership?

Many investors like to check how well a company is owned by insiders. I think it’s a good sign if the insiders own a significant number of shares in the company. From our data, it appears that Rocky Mountain Chocolate Factory insiders own 11% of the company, worth about $ 5.3 million. While better than nothing, we’re not overly impressed with these holdings.

So what does this data suggest about Rocky Mountain Chocolate Factory insiders?

It’s good to see recent purchases. We also trust the longer term picture of insider trading. However, we note that the company has not made a profit in the past twelve months, which makes us cautious. On this analysis, the only small downside we see is fairly low (overall) insider ownership; their trades suggest they’re pretty positive on Rocky Mountain Chocolate Factory stocks. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. To this end, you should inquire about the 3 warning signs we spotted with Rocky Mountain Chocolate Factory (including 1 that should not be ignored).

Of course, you might find a fantastic investment looking elsewhere. So take a look at this free list of interesting companies.

For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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