Potential Dime Community Bancshares, Inc. (NASDAQ:DCOM) shareholders may wish to note that the Senior EVP & Chief Banking Officer, Stuart Lubow, recently bought US$125k worth of stock, paying US$19.22 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 13%.
Dime Community Bancshares Insider Transactions Over The Last Year
Notably, that recent purchase by Stuart Lubow is the biggest insider purchase of Dime Community Bancshares shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$19.29. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 13000 shares worth US$240k. But insiders sold 3676 shares worth US$66k. In the last twelve months there was more buying than selling by Dime Community Bancshares insiders. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Dime Community Bancshares
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Dime Community Bancshares insiders own about US$54m worth of shares. That equates to 7.8% of the company. 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 Dime Community Bancshares Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Dime Community Bancshares shares, given these transactions (along with notable insider ownership of 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.
Of course Dime Community Bancshares 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.
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