Favourable Signals For Auburn National Bancorporation: Numerous Insiders Acquired Stock

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Auburn National Bancorporation, Inc.'s (NASDAQ:AUBN) case, it's fantastic news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Auburn National Bancorporation

The Last 12 Months Of Insider Transactions At Auburn National Bancorporation

In the last twelve months, the biggest single purchase by an insider was when President David Hedges bought US$176k worth of shares at a price of US$17.75 per share. That means that an insider was happy to buy shares at around the current price of US$19.50. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Auburn National Bancorporation insiders decided to buy shares at close to current prices.

While Auburn National Bancorporation insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Auburn National Bancorporation is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Auburn National Bancorporation Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Auburn National Bancorporation. In total, insiders bought US$185k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Does Auburn National Bancorporation Boast High Insider Ownership?

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. Auburn National Bancorporation insiders own about US$12m worth of shares. That equates to 17% 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 Do The Auburn National Bancorporation Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Auburn National Bancorporation shares, given these transactions (along with notable insider ownership of the company). 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. To help with this, we've discovered 5 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in Auburn National Bancorporation.

But note: Auburn National Bancorporation 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.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com