It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Northrim BanCorp, Inc.'s (NASDAQ:NRIM) case, it's fantastic news for 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
The Executive VP & CFO, Jed Ballard, made the biggest insider sale in the last 12 months. That single transaction was for US$57k worth of shares at a price of US$43.39 each. So we know that an insider sold shares at around the present share price of US$42.88. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Jed Ballard was the only individual insider to sell shares in the last twelve months.
In the last twelve months insiders purchased 6.23k shares for US$259k. But insiders sold 1.32k shares worth US$57k. In total, Northrim BanCorp insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Northrim BanCorp 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.
Insiders at Northrim BanCorp Have Sold Stock Recently
Over the last three months, we've seen a bit of insider selling at Northrim BanCorp. The selling netted US$57k for Executive VP & CFO Jed Ballard. But at least we saw US$25k worth of buying. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.
Does Northrim BanCorp Boast High Insider Ownership?
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 2.2% of the company, worth about US$5.8m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Northrim BanCorp Insiders?
Our data shows a little more insider selling than buying in the last three months. But the difference is small, and thus, not concerning. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Northrim BanCorp insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Northrim BanCorp. Our analysis shows 2 warning signs for Northrim BanCorp (1 is significant!) and we strongly recommend you look at them before investing.
But note: Northrim BanCorp 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.
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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.