We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in ACNB Corporation (NASDAQ:ACNB).
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
ACNB Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the , Donald Seibel, sold US$484k worth of shares at a price of US$39.50 per share. That means that an insider was selling shares at around the current price of US$38.11. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn’t a major concern, though it’s hardly a good sign.
Happily, we note that in the last year insiders paid US$213k for 6025.73 shares. On the other hand they divested 13910 shares, for US$529k. Over the last year we saw more insider selling of ACNB shares, than buying. 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!
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Have ACNB Insiders Traded Recently?
The last three months saw some ACNB insider selling. US$13k worth of shares were sold by Donald Seibel. But at least we saw US$4.3k worth of buying. While it’s not great to see insider selling, the net amount sold isn’t enough for us to want to read anything into it.
Does ACNB Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. ACNB insiders own about US$11m worth of shares. That equates to 4.1% 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 ACNB Insiders?
Insider selling has just outweighed insider buying in the last three months. But the net divestment is not enough to concern us at all. We’re a little cautious about the insider selling at ACNB. But we do like the fact that insiders own a fair chunk of the company. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free .
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