Are Insiders Buying BayCom Corp. (NASDAQ:BCML) Stock?
We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in BayCom Corp. (NASDAQ:BCML).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. 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 it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
View our latest analysis for BayCom
The Last 12 Months Of Insider Transactions At BayCom
Over the last year, we can see that the biggest insider purchase was by Director Harpreet Chaudhary for US$230k worth of shares, at about US$23.02 per share. So it’s clear an insider wanted to buy, at around the current price. That means they have been optimistic about the company in the past, though they may have changed their mind. We generally consider it a positive if insiders have been buying on market, even if the share price has increased a bit since then.
Happily, we note that in the last year insiders bought 11.40k shares for a total of US$262k. In total, BayCom insiders bought more than they sold over the last year. They paid about US$23.02 on average. It’s great to see insiders putting their own cash into the company’s stock, albeit at below the recent share price (US$23.07). The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
BayCom is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at BayCom Have Bought Stock Recently
Over the last three months, we’ve seen a bit of insider buying at BayCom. President George Guarini shelled out US$32k for shares in that time. It’s great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.
Does BayCom Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 5.8% of BayCom shares, worth about US$14m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Do The BayCom Insider Transactions Indicate?
Insider purchases have outweighed sales, in the last three months. But the net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in BayCom and we see no evidence to suggest they are worried about the future. Of course, the future is what matters most. So if you are interested in BayCom, you should check out this free report on analyst forecasts for the company.
But note: BayCom 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.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
