Anyone interested in LCNB Corp. (NASDAQ:LCNB) should probably be aware that the Director, William Huddle, recently divested US$119k worth of shares in the company, at an average price of US$18.25 each. However, the silver lining is that the sale only reduced their total holding by-3.5%, so we’re hesitant to read anything much into it, on its own.
LCNB Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Executive VP & Columbus Market President, John Smiley, sold US$170k worth of shares at a price of US$17.00 per share. That means that even when the share price was below the current price of US$17.64, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. This single sale was just 7.8% of John Smiley’s stake.
Over the last year we saw more insider selling of LCNB shares, than buying. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Does LCNB Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. LCNB insiders own about US$17m worth of shares. That equates to 7.3% of the company. 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 LCNB Insider Transactions Indicate?
Insiders sold LCNB shares recently, but they didn’t buy any. And our longer term analysis of insider transactions didn’t bring confidence, either. But since LCNB is profitable and growing, we’re not too worried by this. Insiders own shares, but we’re still pretty cautious, given the history of sales. We’d think twice before buying! 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, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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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. Thank you for reading.