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Have Insiders Sold LCNB Corp. (NASDAQ:LCNB) Shares Recently?

Simply Wall St

We note that the LCNB Corp. (NASDAQ:LCNB) Executive VP & Columbus Market President, John Smiley, recently sold US$79k worth of stock for US$18.10 per share. However we note that the sale only shrunk their holding by 3.9%.

Check out our latest analysis for LCNB

LCNB Insider Transactions Over The Last Year

In fact, the recent sale by Executive VP & Columbus Market President John Smiley was not their only sale of LCNB shares this year. They previously made an even bigger sale of -US$170.0k worth of shares at a price of US$17.00 per share. That means that an insider was selling shares at slightly below the current price (US$17.76). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 7.8%of John Smiley's holding.

Happily, we note that in the last year insiders paid US$41k for 2431 shares. On the other hand they divested 52996 shares, for US$921k. All up, insiders sold more shares in LCNB than they bought, over the last year. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqCM:LCNB Recent Insider Trading, November 10th 2019

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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 7.0% of LCNB shares, worth about US$16m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At LCNB Tell Us?

Unfortunately, there has been more insider selling of LCNB stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, LCNB makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd think twice before buying! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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.