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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Bryn Mawr Bank Corporation (NASDAQ:BMTC).
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. 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 it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.
The Last 12 Months Of Insider Transactions At Bryn Mawr Bank
Over the last year, we can see that the biggest insider purchase was by Chief Financial Officer Michael Harrington for US$91k worth of shares, at about US$30.43 per share. So it's clear an insider wanted to buy, at around the current price, which is US$31.95. 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 Bryn Mawr Bank share holders is that insiders were buying at near the current price.
Bryn Mawr Bank insiders may have bought shares in the last year, but they didn't sell any. 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!
Bryn Mawr Bank is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Bryn Mawr Bank Insiders Bought Stock Recently
It's good to see that Bryn Mawr Bank insiders have made notable investments in the company's shares. Overall, two insiders shelled out US$137k for shares in the company -- and none sold. This makes one think the business has some good points.
Insider Ownership of Bryn Mawr Bank
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 1.5% of Bryn Mawr Bank shares, worth about US$9.8m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Bryn Mawr Bank Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Bryn Mawr Bank insiders are expecting a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 1 warning sign for Bryn Mawr Bank that deserve your attention before buying any shares.
Of course Bryn Mawr Bank 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.
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.
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