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Whilst it may not be a huge deal, we thought it was good to see that the 1st Constitution Bancorp (NASDAQ:FCCY) Corporate Secretary & Independent Director, William Rue, recently bought US$67k worth of stock, for US$13.35 per share. Although the purchase is not a big one, increasing their shareholding by only 1.9%, it can be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At 1st Constitution Bancorp
The Executive VP and Chief Lending & Credit Officer, John Andreacio, made the biggest insider sale in the last 12 months. That single transaction was for US$106k worth of shares at a price of US$17.92 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$12.84. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was John Andreacio. Notably John Andreacio was also the biggest buyer, having purchased US$339k worth of shares.
Happily, we note that in the last year insiders paid US$339k for 21.52k shares. On the other hand they divested 6740 shares, for US$121k. In the last twelve months there was more buying than selling by 1st Constitution Bancorp insiders. Their average price was about US$15.74. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
1st Constitution 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.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that 1st Constitution Bancorp insiders own 12% of the company, worth about US$16m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At 1st Constitution Bancorp Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in 1st Constitution Bancorp shares, given these transactions (along with notable insider ownership of the company). 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. Case in point: We've spotted 4 warning signs for 1st Constitution Bancorp you should be aware of, and 1 of them is a bit concerning.
Of course 1st Constitution 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.
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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. 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. Thank you for reading.