Are Insiders Buying The Bank of Princeton (NASDAQ:BPRN) Stock?

We often see insiders buying up shares in companies that perform well over the long term. 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 The Bank of Princeton (NASDAQ:BPRN).

What Is Insider Selling?

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.

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

Check out our latest analysis for Bank of Princeton

Bank of Princeton Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Martin Tuchman bought US$859k worth of shares at a price of US$33.00 per share. That means that an insider was happy to buy shares at above the current price. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. That purchase may suggest an expectation of positive returns over the long term.

In the last twelve months insiders paid US$3.4m for 104.26k shares purchased. In the last twelve months there was more buying than selling by Bank of Princeton insiders. Their average price was about US$32.82. This is nice to see since it implies that insiders might see value around current prices (around US$28.57). The chart below shows insider transactions over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGS:BPRN Insider Trading November 27th 18
NasdaqGS:BPRN Insider Trading November 27th 18

Bank of Princeton is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Bank of Princeton Insiders Bought Stock Recently

Over the last quarter, Bank of Princeton insiders have spent a meaningful amount on shares. Overall, 2 insiders shelled out US$230k for shares in the company — and none sold. This is a positive in our book as it implies some confidence.

Does Bank of Princeton Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 21% of Bank of Princeton shares, worth about US$41m. This level of insider ownership is good but just short of being particularly stand-out, but it certainly does suggest a reasonable degree of alignment.

So What Do The Bank of Princeton Insider Transactions Indicate?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Insiders likely see value in Bank of Princeton shares, given these transactions (along with notable insider ownership of the company). Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Bank of Princeton.

But note: Bank of Princeton 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.

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.