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 shareholders might well want to know whether insiders have been buying or selling shares in Evans Bancorp, Inc. (NYSEMKT:EVBN).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. 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’.
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Evans Bancorp Insider Transactions Over The Last Year
Chairman of the Board Lee Wortham made the biggest insider purchase in the last 12 months. That single transaction was for US$93k worth of shares at a price of US$33.35 each. That implies that an insider found the current (approximate) price enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. Nonetheless, we consider it positive if insiders want to buy at around the current share price.
Over the last year, we can see that insiders have bought 5.29k shares worth US$184k. But insiders sold 2.25k shares worth US$74k. In the last twelve months there was more buying than selling by Evans Bancorp insiders. Their average price was about US$34.88. These transactions suggest that insiders have considered the current price of US$33.85 attractive. You can see the insider transactions (by individuals) over the last year depicted in the chart below. 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.
Insiders at Evans Bancorp Have Bought Stock Recently
There has been significantly more insider buying, than selling, at Evans Bancorp, over the last three months. Insiders spent US$153k on shares. On the other hand, John Connerton netted US$74k by selling. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Does Evans Bancorp Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Evans Bancorp insiders own about US$7.1m worth of shares (which is 4.4% of the company). Whilst better than nothing, we’re not overly impressed by these holdings.
So What Do The Evans Bancorp Insider Transactions Indicate?
It’s certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Evans Bancorp stock. Of course, the future is what matters most. So if you are interested in Evans Bancorp, you should check out this free report on analyst forecasts for the company.
But note: Evans 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.
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.