Even if it's not a huge purchase, we think it was good to see that Craig Johnson, the Vice Chairman of JMP Group LLC (NYSE:JMP) recently shelled out US$69k to buy stock, at US$2.75 per share. Although the purchase is not a big one, increasing their shareholding by only 1.9%, it can be interpreted as a good sign.

Check out our latest analysis for JMP Group

JMP Group Insider Transactions Over The Last Year

The Chairman & CEO, Joseph Jolson, made the biggest insider sale in the last 12 months. That single transaction was for US$478k worth of shares at a price of US$2.39 each. That means that an insider was selling shares at slightly below the current price (US$3.02). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 3.0% of Joseph Jolson's holding. Joseph Jolson was the only individual insider to sell over the last year. Notably Joseph Jolson was also the biggest buyer, having purchased US$535k worth of shares.

Over the last year, we can see that insiders have bought 197.38k shares worth US$535k. But insiders sold 200.00k shares worth US$478k. Overall, JMP Group insiders were net buyers during the last year. 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!

JMP Group 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 JMP Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. JMP Group insiders own 58% of the company, currently worth about US$34m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About JMP Group Insiders?

The insider sales have outweighed the insider buying, at JMP Group, in the last three months. But we take heart from prior transactions. And insider ownership remains quite considerable. So the recent selling doesn't worry us. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (1 can't be ignored!) that you ought to be aware of before buying any shares in JMP Group.

Of course JMP Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

This article by Simply Wall St is general in nature. 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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