SB One Bancorp (NASDAQ:SBBX) Insiders Have Been Selling
We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in SB One Bancorp (NASDAQ:SBBX).
What Is Insider Buying?
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.
View our latest analysis for SB One Bancorp
SB One Bancorp Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the , Vito Giannola, sold US$203k worth of shares at a price of US$22.50 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$22.75. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 13% of Vito Giannola's holding.
Over the last year, we can see that insiders have bought 12759 shares worth US$297k. But they sold 31785 for US$711k. Over the last year we saw more insider selling of SB One Bancorp shares, than buying. 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insiders at SB One Bancorp Have Sold Stock Recently
We have seen a bit of insider selling at SB One Bancorp, over the last three months. The selling netted US$173k for insider George Lista. But the good news is that there was purchasing too , worth US$135k. 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
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 14% of SB One Bancorp shares, worth about US$29m. 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 Does This Data Suggest About SB One Bancorp Insiders?
Our data shows a little more insider selling than buying in the last three months. But the difference is small, and thus, not concerning. Recent insider selling makes us a little nervous, in light of the broader picture of SB One Bancorp insider transactions. But it's good to see that insiders own shares in the company. 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: SB One 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, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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.
