Whilst it may not be a huge deal, we thought it was good to see that the National Bankshares, Inc. (NASDAQ:NKSH) Independent Vice Chairman of the Board, Charles Green, recently bought US$70k worth of stock, for US$35.22 per share. However, it only increased their shares held by 4.5%, and it wasn't a huge purchase by absolute value, either.
National Bankshares Insider Transactions Over The Last Year
Notably, that recent purchase by Charles Green is the biggest insider purchase of National Bankshares shares that we've seen in the last year. That implies that an insider found the current price of US$36.25 per share to be enticing. 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. Happily, the National Bankshares insiders decided to buy shares at close to current prices.
In the last twelve months insiders purchased 6.34k shares for US$199k. But they sold 1.00 shares for US$31.3. In the last twelve months there was more buying than selling by National Bankshares insiders. The average buy price was around US$31.46. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and 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!
National Bankshares is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.7% of National Bankshares shares, worth about US$6.0m, according to our data. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At National Bankshares Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that National Bankshares insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for National Bankshares and we suggest you have a look.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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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