Northrim BanCorp Insiders Added US$619.7k Of Stock To Their Holdings
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Northrim BanCorp, Inc. (NASDAQ:NRIM), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Northrim BanCorp
The Last 12 Months Of Insider Transactions At Northrim BanCorp
Over the last year, we can see that the biggest insider purchase was by insider David Wight for US$94k worth of shares, at about US$46.91 per share. That means that an insider was happy to buy shares at around the current price of US$49.10. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Northrim BanCorp insiders decided to buy shares at close to current prices.
Happily, we note that in the last year insiders paid US$620k for 15.71k shares. But insiders sold 1.20k shares worth US$49k. Overall, Northrim BanCorp insiders were net buyers during the last year. Their average price was about US$39.46. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Northrim BanCorp is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 3.1% of Northrim BanCorp shares, worth about US$8.5m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Northrim BanCorp Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Northrim BanCorp stock. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Northrim 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.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
