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 Northrim BanCorp, Inc. (NASDAQ:NRIM), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Northrim BanCorp
Over the last year, we can see that the biggest insider sale was by the Independent Director, David Wight, for US$65k worth of shares, at about US$32.68 per share. That means that even when the share price was below the current price of US$44.09, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 13% of David Wight's holding. David Wight was the only individual insider to sell shares in the last twelve months. Notably David Wight was also the biggest buyer, having purchased US$260k worth of shares.
Over the last year, we can see that insiders have bought 6.47k shares worth US$260k. But insiders sold 2.00k shares worth US$65k. In the last twelve months there was more buying than selling by Northrim BanCorp insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Northrim BanCorp is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Northrim BanCorp Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Northrim BanCorp. Not only was there no selling that we can see, but they collectively bought US$127k worth of shares. This is a positive in our book as it implies some confidence.
Insider Ownership of Northrim BanCorp
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Northrim BanCorp insiders own 2.3% of the company, worth about US$6.4m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Northrim BanCorp Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. 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 Northrim BanCorp stock. 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 assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Northrim BanCorp.
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.
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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