Have ConnectOne Bancorp, Inc. (NASDAQ:CNOB) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
November 18, 2020
NasdaqGS:CNOB

We wouldn't blame ConnectOne Bancorp, Inc. (NASDAQ:CNOB) shareholders if they were a little worried about the fact that Michael Kempner, the Independent Director recently netted about US$505k selling shares at an average price of US$17.17. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.2%.

View our latest analysis for ConnectOne Bancorp

The Last 12 Months Of Insider Transactions At ConnectOne Bancorp

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Frank Huttle, sold US$1.2m worth of shares at a price of US$15.55 per share. That means that even when the share price was below the current price of US$17.75, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 32% of Frank Huttle's holding.

In the last twelve months insiders purchased 8.80k shares for US$116k. On the other hand they divested 112.69k shares, for US$1.8m. Over the last year we saw more insider selling of ConnectOne Bancorp shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:CNOB Insider Trading Volume November 18th 2020

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Insider Ownership of ConnectOne Bancorp

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. ConnectOne Bancorp insiders own about US$87m worth of shares. That equates to 12% 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 ConnectOne Bancorp Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ConnectOne Bancorp. Case in point: We've spotted 2 warning signs for ConnectOne Bancorp you should be aware of.

Of course ConnectOne Bancorp may not be the best stock to buy. So you may wish to see this free collection of high quality 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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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. 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.
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