Investors who take an interest in Camden National Corporation (NASDAQ:CAC) should definitely note that the Secretary & Independent Director, Ann Bresnahan, recently paid US$26.06 per share to buy US$261k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 26%.
The Last 12 Months Of Insider Transactions At Camden National
In fact, the recent purchase by Ann Bresnahan was the biggest purchase of Camden National shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$27.99 per share to be enticing. 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. The good news for Camden National share holders is that insiders were buying at near the current price.
Happily, we note that in the last year insiders paid US$382k for 15.12k shares. But insiders sold 4222 shares worth US$203k. In the last twelve months there was more buying than selling by Camden National insiders. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
For a common shareholder, it is worth checking how many shares are held by company 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 Camden National insiders own 2.7% of the company, worth about US$11m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Camden National Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Camden National we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 2 warning signs for Camden National (1 is concerning!) that we believe deserve your full attention.
Of course Camden National may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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