Bullish insiders at Primis Financial Corp. (NASDAQ:FRST) loaded up on US$1.5m of stock earlier this year
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Primis Financial Corp. (NASDAQ:FRST), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Primis Financial
The Last 12 Months Of Insider Transactions At Primis Financial
In the last twelve months, the biggest single purchase by an insider was when President Dennis Zember bought US$342k worth of shares at a price of US$13.79 per share. So it's clear an insider wanted to buy, at around the current price, which is US$14.01. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Primis Financial share holders is that insiders were buying at near the current price.
Happily, we note that in the last year insiders paid US$1.5m for 102.81k shares. On the other hand they divested 538.00 shares, for US$7.7k. Overall, Primis Financial insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders at Primis Financial Have Bought Stock Recently
At Primis Financial,over the last quarter, we have observed quite a lot more insider buying than insider selling. In total, 10 insiders bought US$891k worth of shares in that time. On the other hand, insider Bruce Brockwell netted US$7.7k by selling. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Insider Ownership of Primis Financial
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 3.6% of Primis Financial shares, worth about US$13m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Primis Financial Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Primis Financial we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 1 warning sign with Primis Financial and understanding this should be part of your investment process.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
