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 shareholders might well want to know whether insiders have been buying or selling shares in Sandy Spring Bancorp, Inc. (NASDAQ:SASR).
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, 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 equally, we would consider it foolish to ignore insider transactions altogether. 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’.
Sandy Spring Bancorp Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by Joseph Bracewell for US$1.4m worth of shares, at about US$43.36 per share. That is hardly a positive sign, even though it took place above the latest price (US$33.44). So it is hard to draw any strong conclusion from it.
Happily, we note that in the last year insiders paid US$96k for 3.00k shares. But they sold 116.76k for US$4.9m. Over the last year we saw more insider selling of Sandy Spring Bancorp shares, than buying. The sellers received a price of around US$42.30, on average. Insider selling doesn’t make us excited to buy. But the selling was at much higher prices than the current share price (US$33.44), so it probably doesn’t tell us a lot about the value on offer today. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Sandy Spring 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.
Insiders at Sandy Spring Bancorp Have Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at Sandy Spring Bancorp. Overall, 4 insiders shelled out US$96k for shares in the company — and none sold. This is a positive in our book as it implies some confidence.
Insider Ownership of Sandy Spring Bancorp
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Sandy Spring Bancorp insiders own about US$34m worth of shares. That equates to 2.9% of the company. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Do The Sandy Spring Bancorp Insider Transactions Indicate?
The recent insider purchases are heartening. On the other hand the transaction history, over the last year, isn’t so positive. The more recent transactions are a positive, but Sandy Spring Bancorp insiders haven’t shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. So they seem pretty well aligned, overall. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Sandy Spring Bancorp.
Of course Sandy Spring Bancorp may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.