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 ConnectOne Bancorp, Inc. (NASDAQ:CNOB).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Want to help shape the future of investing tools and platforms? Take the survey and be part of one of the most advanced studies of stock market investors to date.
ConnectOne Bancorp Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by Chairman Frank Sorrentino for US$718k worth of shares, at about US$25.06 per share. That is hardly a positive sign, even though it took place above the latest price (US$19.19). So it may not tell us anything about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 22.55k shares worth US$496k. But they sold 58.98k for US$1.5m. In total, ConnectOne Bancorp insiders sold more than they bought over the last year. The average sell price was around US$25.00. It is certainly not great to see that insiders have sold shares in the company. But the selling was at much higher prices than the current share price (US$19.19), so it probably doesn’t tell us a lot about the value on offer today. 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 like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
ConnectOne Bancorp Insiders Bought Stock Recently
Over the last three months, we’ve seen a bit of insider buying at ConnectOne Bancorp. In that period insiders spent US$323k on shares. However, they netted US$307k for sales. While it’s good to see the insider buying, the net amount bought isn’t enough for us to gain much confidence from it.
Insider Ownership of ConnectOne Bancorp
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. It appears that ConnectOne Bancorp insiders own 8.0% of the company, worth about US$50m. 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 Does This Data Suggest About ConnectOne Bancorp Insiders?
Our data shows a little more insider buying than selling in the last three months. But overall the difference isn’t worth writing home about. Recent sales exacerbate our caution arising from analysis of ConnectOne Bancorp insider transactions. But we do like the fact that insiders own a fair chunk of the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for ConnectOne Bancorp.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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 firstname.lastname@example.org.