We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Bank of Commerce Holdings (NASDAQ:BOCH).
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, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
View our latest analysis for Bank of Commerce Holdings
The Last 12 Months Of Insider Transactions At Bank of Commerce Holdings
Chairman of the Board Lyle Tullis made the biggest insider purchase in the last 12 months. That single transaction was for US$231k worth of shares at a price of US$11.54 each. That means that even when the share price was higher, an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. That purchase may suggest an expectation of positive returns over the long term.
In the last twelve months insiders paid US$789k for 69.25k shares purchased. In total, Bank of Commerce Holdings insiders bought more than they sold over the last year. Their average price was about US$11.39. I’d consider this a positive as it suggests insiders see value at around the current price, which is US$10.81. You can see the insider transactions over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Bank of Commerce Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Bank of Commerce Holdings Insiders Bought Stock Recently
It’s good to see that Bank of Commerce Holdings insiders have made notable investments in the company’s shares. In total, insiders bought US$502k worth of shares in that time, and we didn’t record any sales whatsoever. That shows some optimism about the company’s future.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It’s great to see that Bank of Commerce Holdings insiders own 6.7% of the company, worth about US$12m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Bank of Commerce Holdings Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Bank of Commerce Holdings we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in Bank of Commerce Holdings, you should check out this free report on analyst forecasts for the company.
Of course Bank of Commerce Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.