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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in First Northwest Bancorp (NASDAQ:FNWB).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
The Last 12 Months Of Insider Transactions At First Northwest Bancorp
In the last twelve months, the biggest single purchase by an insider was when insider Matthew Deines bought US$162k worth of shares at a price of US$16.25 per share. That implies that an insider found the current price of US$17.29 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. Happily, the First Northwest Bancorp insiders decided to buy shares at close to current prices.
Over the last year, we can see that insiders have bought 14946 shares worth US$239k. But insiders sold 1333 shares worth US$22k. In the last twelve months there was more buying than selling by First Northwest Bancorp insiders. You can see a visual depiction of insider transactions (by 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!
First Northwest 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.
First Northwest Bancorp Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at First Northwest Bancorp. Not only was there no selling that we can see, but they collectively bought US$193k worth of shares. This makes one think the business has some good points.
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 4.3% of First Northwest Bancorp shares, worth about US$7.5m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About First Northwest Bancorp Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that First Northwest Bancorp insiders are expecting a bright future. Along with insider transactions, I recommend checking if First Northwest Bancorp is growing revenue. This free chart of historic revenue and earnings should make that easy.
Of course First Northwest Bancorp 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.