How Many Peoples Financial Services Corp. (NASDAQ:PFIS) Shares Did Insiders Buy, In The Last Year?
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Peoples Financial Services Corp. (NASDAQ:PFIS).
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.
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.'
See our latest analysis for Peoples Financial Services
Peoples Financial Services Insider Transactions Over The Last Year
Senior EVP & COO Thomas Tulaney made the biggest insider purchase in the last 12 months. That single transaction was for US$328k worth of shares at a price of US$41.00 each. So it's clear an insider wanted to buy, at around the current price, which is US$44.50. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Peoples Financial Services share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 20246 shares for US$835k. But insiders sold 100 shares worth US$4.2k. Overall, Peoples Financial Services insiders were net buyers last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Peoples Financial Services is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Are Peoples Financial Services Insiders Buying Or Selling?
There was some insider buying at Peoples Financial Services over the last quarter. Director Ronald Kukuchka bought US$8.5k worth of shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership of Peoples Financial Services
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Peoples Financial Services insiders own 8.1% of the company, worth about US$27m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Peoples Financial Services Insider Transactions Indicate?
Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Peoples Financial Services and we see no evidence to suggest they are worried about the future. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow .
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.
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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.
