Shares of SB Financial Group Inc (NASDAQ:SBFG) rose by 0.86% since the previous regular session. Chairman & CEO Klein Mark filed a Form 4 with the SEC on Monday, Jun 08. The insider bought 250 shares at an average price of $15.70. After the transaction, the executive's stake in SB Financial Group Inc. moved to 69,015 shares.
Why Insider Transactions Are Important?
Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision. Insiders buying stock after a notable sell off can indicate an insider's long-term belief in the success of the company; insiders buying stock at new highs can be an indication the executive doesn't feel the stock is overvalued. Insiders who sell stock at new lows could be anticipating some capitulation moment. If the insider sells at new highs, it could point to the intention to "take some profit" and "lock in a gain. "
Transaction Codes To Focus On
Wall Street tends to focus on insider transactions which take place in the open market, viewed inside a Form 4 filing via codes P for purchase and S for sale. if the transaction was an open-market transaction, that means that the insider made a concious decision for the company's stock moving forward. Transaction codes other than P or S are often viewed with less conviction as they are often not tied to a decision by the exec. As an example, transaction code C indicates the conversion of an option. Transaction code A indicates the insider may have been forced to sell shares in order to receive compensation the exec was promised upon being hired by a company.
See more from Benzinga
- A Look Into JD.com's Price Over Earnings
- Price Over Earnings Overview: Dick's Sporting Goods
- A Look Into LeMaitre Vascular's Price Over Earnings
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.