Whilst it may not be a huge deal, we thought it was good to see that the National Bankshares, Inc. (NASDAQ:NKSH) Independent Director, Lawrence Ball, recently bought US$58k worth of stock, for US$29.00 per share. That purchase might not be huge but it did increase their holding by 25%.
The Last 12 Months Of Insider Transactions At National Bankshares
In fact, the recent purchase by Lawrence Ball was the biggest purchase of National Bankshares shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is US$29.98. 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 National Bankshares insiders decided to buy shares at close to current prices.
In the last twelve months National Bankshares insiders were buying shares, but not selling. They paid about US$33.16 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Does National Bankshares Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 3.9% of National Bankshares shares, worth about US$7.6m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About National Bankshares Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that National Bankshares insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing National Bankshares. For example, National Bankshares has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.
But note: National Bankshares may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
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.
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