Several Insiders Invested In Bank of Marin Bancorp Flagging Positive News
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Bank of Marin Bancorp's (NASDAQ:BMRC) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Bank of Marin Bancorp
The Last 12 Months Of Insider Transactions At Bank of Marin Bancorp
In the last twelve months, the biggest single purchase by an insider was when Independent Chairman of the Board William McDevitt bought US$137k worth of shares at a price of US$15.40 per share. We do like to see buying, but this purchase was made at well below the current price of US$18.26. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months insiders purchased 22.89k shares for US$349k. On the other hand they divested 4.15k shares, for US$126k. Overall, Bank of Marin Bancorp insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Bank of Marin Bancorp is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Bank of Marin Bancorp
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 11% of Bank of Marin Bancorp shares, worth about US$32m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Bank of Marin Bancorp Tell Us?
It doesn't really mean much that no insider has traded Bank of Marin Bancorp shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Bank of Marin Bancorp and their transactions don't cause us concern. 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. For example - Bank of Marin Bancorp has 1 warning sign we think you should be aware of.
But note: Bank of Marin 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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
