Insider Stock Buying Reaches US$692k On Northrim BanCorp
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Northrim BanCorp, Inc.'s (NASDAQ:NRIM) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Northrim BanCorp
The Last 12 Months Of Insider Transactions At Northrim BanCorp
In the last twelve months, the biggest single purchase by an insider was when Independent Director David Wight bought US$94k worth of shares at a price of US$46.91 per share. That means that an insider was happy to buy shares at above the current price of US$42.44. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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.
In the last twelve months insiders purchased 17.20k shares for US$692k. But insiders sold 1.49k shares worth US$82k. Overall, Northrim BanCorp insiders were net buyers during the last year. Their average price was about US$40.25. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Northrim BanCorp is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Northrim BanCorp Insiders Bought Stock Recently
It's good to see that Northrim BanCorp insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought US$70k worth of shares. That shows some optimism about the company's future.
Insider Ownership Of Northrim BanCorp
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Northrim BanCorp insiders own about US$7.2m worth of shares (which is 3.0% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Northrim BanCorp Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Northrim BanCorp stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 1 warning sign for Northrim BanCorp you should be aware of.
But note: Northrim BanCorp 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.
