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It is not uncommon to see companies perform well in the years after insiders buy shares. 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 before you buy or sell The Bank of Princeton (NASDAQ:BPRN), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
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, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. 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 Princeton
Martin Tuchman made the biggest insider purchase in the last 12 months. That single transaction was for US$859k worth of shares at a price of US$33.00 each. That means that an insider was happy to buy shares at above the current price. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. We generally consider it a positive if insiders have been buying on market, even above the current price.
In the last twelve months insiders paid US$4.1m for 129.26k shares purchased. Overall, Bank of Princeton insiders were net buyers last year. The average buy price was around US$32.05. This is nice to see since it implies that insiders might see value around current prices (around US$31.05). 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Bank of Princeton Insiders Bought Stock Recently
Over the last quarter, Bank of Princeton insiders have spent a meaningful amount on shares. Overall, 2 insiders shelled out US$763k for shares in the company — and none sold. That shows some optimism about the company’s future.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Bank of Princeton insiders own about US$44m worth of shares. That equates to 21% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Bank of Princeton Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Insiders likely see value in Bank of Princeton shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in Bank of Princeton, you should check out this free report on analyst forecasts for the company.
But note: Bank of Princeton 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.
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 firstname.lastname@example.org.