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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Northrim BanCorp, Inc. (NASDAQ:NRIM), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We don’t think shareholders should simply follow insider transactions. 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.’
Northrim BanCorp Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by Director David Wight for US$88k worth of shares, at about US$44.15 per share. That means that an insider was selling shares at around the current price of US$39.05. While their view may have changed since the sale, this is not a particularly positive fact. We usually pause to reflect on the potential that a stock has a high valuation, if insiders have been selling at around the current price.
In the last twelve months insiders purchased 5.12k shares for US$199k. But insiders sold 4.40k shares worth US$180k. In total, Northrim BanCorp insiders bought more than they sold over the last year. Their average price was about US$38.81. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price of US$39.05. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Northrim BanCorp is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Northrim BanCorp Insiders Bought Stock Recently
It’s good to see that Northrim BanCorp insiders have made notable investments in the company’s shares. In total, insiders bought US$51k worth of shares in that time, and we didn’t record any sales whatsoever. This makes one think the business has some good points.
Insider Ownership of Northrim BanCorp
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. From our data, it seems that Northrim BanCorp insiders own 2.1% of the company, worth about US$5.7m. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Northrim BanCorp Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give 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 Northrim BanCorp stock. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Northrim BanCorp.
Of course Northrim BanCorp may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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 email@example.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.