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 before you buy or sell Origin Bancorp, Inc. (NASDAQ:OBNK), 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, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. 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.'
Origin Bancorp Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Director James Davison bought US$2.2m worth of shares at a price of US$34.00 per share. That means that an insider was happy to buy shares at around the current price of US$34.71. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Origin Bancorp insiders decided to buy shares at close to current prices.
Over the last year, we can see that insiders have bought 84689 shares worth US$2.9m. But insiders sold 20420 shares worth US$648k. In the last twelve months there was more buying than selling by Origin Bancorp insiders. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Origin Bancorp
Many investors like to check how much of a company is owned by 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. Insiders own 6.6% of Origin Bancorp shares, worth about US$54m. 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 Does This Data Suggest About Origin Bancorp Insiders?
It doesn't really mean much that no insider has traded Origin Bancorp shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Origin Bancorp and we see no evidence to suggest they are worried about the future. Of course, the future is what matters most. So if you are interested in Origin Bancorp, you should check out this free report on analyst forecasts for the company.
Of course Origin Bancorp may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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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.