It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in The First Bancorp, Inc. (NASDAQ:FNLC).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
First Bancorp Insider Transactions Over The Last Year
CRA Officer & Compliance Officer Susan Norton made the biggest insider sale in the last 12 months. That single transaction was for US$91k worth of shares at a price of US$30.29 each. So we know that an insider sold shares at around the present share price of US$27.98. They could have a variety of motivations for selling, but it’s still not particularly encouraging to see. We generally tread carefully if insiders have been selling on market, even if they sold slightly above the current price.
In total, First Bancorp insiders sold more than they bought over the last year. The sellers received a price of around US$30.34, on average. It’s not particularly great to see insiders were selling shares at below recent prices. Since insiders sell for many reasons, we wouldn’t put too much weight on it. You can see the insider transactions over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
First Bancorp is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Have First Bancorp Insiders Traded Recently?
Over the last three months, we’ve seen a bit of insider buying at First Bancorp. Vice Chairman of the Board Mark Rosborough purchased US$9.2k worth of shares in that period. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn’t enough for us too put much weight on it, as a single factor.
Does First Bancorp Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. First Bancorp insiders own about US$20m worth of shares (which is 6.7% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About First Bancorp Insiders?
We note a that there has been a tad more insider buying than selling, recently. But the difference isn’t much. We don’t take much encouragement from the transactions by First Bancorp insiders. But it’s good to see that insiders own shares in the company. Along with insider transactions, I recommend checking if First Bancorp is growing revenue. This free chart of historic revenue and earnings should make that easy.
Of course First Bancorp may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.