Insider Stock Buying Reaches US$1.1m On Brookline Bancorp
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Brookline Bancorp, Inc.'s (NASDAQ:BRKL) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Brookline Bancorp
The Last 12 Months Of Insider Transactions At Brookline Bancorp
In the last twelve months, the biggest single purchase by an insider was when Independent Director Bogdan Nowak bought US$290k worth of shares at a price of US$11.61 per share. That means that even when the share price was higher than US$8.97 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 99.24k shares worth US$1.1m. But they sold 15.00k shares for US$196k. Overall, Brookline Bancorp insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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.
Insiders At Brookline Bancorp Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Brookline Bancorp. Not only was there no selling that we can see, but they collectively bought US$142k worth of shares. That shows some optimism about the company's future.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 2.8% of Brookline Bancorp shares, worth about US$22m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Brookline Bancorp Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Brookline Bancorp we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Brookline Bancorp. At Simply Wall St, we found 1 warning sign for Brookline Bancorp that deserve your attention before buying any shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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