Bullish insiders bet US$722k on Farmers National Banc Corp. (NASDAQ:FMNB)
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Farmers National Banc Corp.'s (NASDAQ:FMNB) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Farmers National Banc
Farmers National Banc Insider Transactions Over The Last Year
The Independent Director Edward Muransky made the biggest insider purchase in the last 12 months. That single transaction was for US$154k worth of shares at a price of US$15.40 each. That implies that an insider found the current price of US$16.87 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Farmers National Banc insiders decided to buy shares at close to current prices.
In the last twelve months insiders purchased 48.21k shares for US$722k. On the other hand they divested 1.50k shares, for US$21k. In the last twelve months there was more buying than selling by Farmers National Banc 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!
Farmers National Banc is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Farmers National Banc Have Bought Stock Recently
It's good to see that Farmers National Banc insiders have made notable investments in the company's shares. In total, insiders bought US$629k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Farmers National Banc insiders own about US$44m worth of shares. That equates to 9.2% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Farmers National Banc Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Farmers National Banc we think they are probably pretty confident of a bright future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Farmers National Banc 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.
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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