David Becker Is The Chairman & CEO of First Internet Bancorp (NASDAQ:INBK) And They Just Picked Up 1.3% More Shares
Even if it's not a huge purchase, we think it was good to see that David Becker, the Chairman & CEO of First Internet Bancorp (NASDAQ:INBK) recently shelled out US$94k to buy stock, at US$18.72 per share. However, it only increased their shares held by 1.3%, and it wasn't a huge purchase by absolute value, either.
See our latest analysis for First Internet Bancorp
First Internet Bancorp Insider Transactions Over The Last Year
Notably, that recent purchase by Chairman & CEO David Becker was not the only time they bought First Internet Bancorp shares this year. They previously made an even bigger purchase of US$1.1m worth of shares at a price of US$36.42 per share. That means that an insider was happy to buy shares at above the current price of US$20.46. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
First Internet Bancorp insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$32.32. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
First Internet Bancorp is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of First Internet Bancorp
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. First Internet Bancorp insiders own about US$15m worth of shares. That equates to 8.2% of the company. 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 First Internet Bancorp 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 First Internet Bancorp we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing First Internet Bancorp. Case in point: We've spotted 1 warning sign for First Internet Bancorp you should be aware of.
Of course First Internet 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. 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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