Independent Director Raymond Nielsen Just Bought 5.0% More Shares In Dime Community Bancshares, Inc. (NASDAQ:DCOM)
Whilst it may not be a huge deal, we thought it was good to see that the Dime Community Bancshares, Inc. (NASDAQ:DCOM) Independent Director, Raymond Nielsen, recently bought US$61k worth of stock, for US$34.18 per share. Although the purchase is not a big one, increasing their shareholding by only 5.0%, it can be interpreted as a good sign.
View our latest analysis for Dime Community Bancshares
The Last 12 Months Of Insider Transactions At Dime Community Bancshares
In fact, the recent purchase by Raymond Nielsen was the biggest purchase of Dime Community Bancshares shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$33.64 (the recent price), 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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid US$84k for 2.49k shares. But they sold 1.47k shares for US$52k. In total, Dime Community Bancshares insiders bought more than they sold over the last year. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Dime Community Bancshares insiders own 8.7% of the company, currently worth about US$113m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Dime Community Bancshares Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Dime Community Bancshares. That's what I like to see! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Dime Community Bancshares 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.
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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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