- Oops!Something went wrong.Please try again later.
We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Bank of Marin Bancorp (NASDAQ:BMRC).
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.
The Last 12 Months Of Insider Transactions At Bank of Marin Bancorp
In the last twelve months, the biggest single purchase by an insider was when Independent Director Leslie Murphy bought US$81k worth of shares at a price of US$31.33 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$39.84. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Bank of Marin Bancorp is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Bank of Marin Bancorp Insiders Are Selling The Stock
The last three months saw some Bank of Marin Bancorp insider selling. Executive VP & Chief Credit Officer - Bank of Marin Elizabeth Reizman only netted US$38k selling shares, in that period. Neither the lack of buying nor the presence of selling is heartening. But the volume sold is so low that it really doesn't bother us.
Does Bank of Marin Bancorp Boast High Insider Ownership?
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. Bank of Marin Bancorp insiders own about US$22m worth of shares. That equates to 4.1% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Bank of Marin Bancorp Insiders?
Our data shows a little more insider selling, but no insider buying, in the last three months. But the sales were small, so we're not concerned. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Bank of Marin Bancorp and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bank of Marin Bancorp. For example - Bank of Marin Bancorp has 1 warning sign we think you should be aware of.
But note: Bank of Marin 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.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.