It is not uncommon to see companies perform well in the years after insiders buy shares. 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 before you buy or sell American River Bankshares (NASDAQ:AMRB), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
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.’
American River Bankshares Insider Transactions Over The Last Year
Vice Chairman of the Board William Robotham made the biggest insider purchase in the last 12 months. That single transaction was for US$155k worth of shares at a price of US$15.50 each. That means that even when the share price was higher, an insider wanted to purchase shares. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. We generally consider it a positive if insiders have been buying on market, even above the current price.
In the last twelve months insiders purchased 30.74k shares for US$474k. But insiders sold 4.43k shares worth US$69k. Overall, American River Bankshares insiders were net buyers last year. They paid about US$15.42 on average. This is nice to see since it implies that insiders might see value around current prices (around US$13.58). You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders at American River Bankshares Have Bought Stock Recently
There was some insider buying at American River Bankshares over the last quarter. Insiders bought US$18k worth of shares in that time. It’s good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.
Does American River Bankshares 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. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that American River Bankshares insiders own 11% of the company, worth about US$8.4m. Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!
So What Do The American River Bankshares Insider Transactions Indicate?
Our data shows a little more insider buying than selling in the last three months. But the net investment is not enough to encourage us much. 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 American River Bankshares insiders are doubting the company. Of course, the future is what matters most. So if you are interested in American River Bankshares, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.