Read This Before Selling Pathfinder Bancorp, Inc. (NASDAQ:PBHC) Shares
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 we’ll take a look at whether insiders have been buying or selling shares in Pathfinder Bancorp, Inc. (NASDAQ:PBHC).
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. 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’.
See our latest analysis for Pathfinder Bancorp
Pathfinder Bancorp Insider Transactions Over The Last Year
President Thomas Schneider made the biggest insider sale in the last 12 months. That single transaction was for US$59k worth of shares at a price of US$14.75 each. So what is clear is that an insider saw fit to sell at around the current price of US$14.21. They might be selling for a variety of reasons, but it’s hard to argue this is a bullish sign. Arguably, insider selling at around current prices should give us reason to reflect on whether the stock is fully valued at the moment. Thomas Schneider was the only individual insider to sell over the last year.
Over the last year, we can see that insiders have bought 6.60k shares worth US$102k. But insiders sold 4.00k shares worth US$59k. In the last twelve months there was more buying than selling by Pathfinder Bancorp insiders. Their average price was about US$15.38. I’d consider this a positive as it suggests insiders see value at around the current price, which is US$14.21. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insiders at Pathfinder Bancorp Have Sold Stock Recently
The last three months saw some Pathfinder Bancorp insider selling. US$59k worth of shares were sold by Thomas Schneider. But US$21k was spent on buying, too, . While it’s not great to see insider selling, the net amount sold isn’t enough for us to want to read anything into it.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Pathfinder Bancorp insiders own about US$11m worth of shares. That equates to 18% of the company. 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 Pathfinder Bancorp Insider Transactions Indicate?
Our data shows a little more insider selling than buying in the last three months. But the difference isn’t enough to have us worried. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Pathfinder Bancorp and their transactions don’t cause us concern. 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 .
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
