Positive Signs As Multiple Insiders Buy Primis Financial Stock
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Primis Financial Corp.'s (NASDAQ:FRST) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Primis Financial
The Last 12 Months Of Insider Transactions At Primis Financial
The Executive VP & CFO Matthew Switzer made the biggest insider purchase in the last 12 months. That single transaction was for US$100k worth of shares at a price of US$10.02 each. We do like to see buying, but this purchase was made at well below the current price of US$12.42. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Happily, we note that in the last year insiders paid US$437k for 48.03k shares. But insiders sold 178.00 shares worth US$2.1k. Overall, Primis Financial insiders were net buyers during the last year. The chart below shows insider transactions (by companies and 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!
Primis Financial is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Primis Financial
Many investors like to check how much of a company is owned by 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. It appears that Primis Financial insiders own 3.9% of the company, worth about US$12m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Primis Financial Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Primis Financial and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Primis Financial. You'd be interested to know, that we found 3 warning signs for Primis Financial and we suggest you have a look.
But note: Primis Financial 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.
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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.
