Dime Community Bancshares Insiders Added US$595k Of Stock To Their Holdings

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Dime Community Bancshares, Inc.'s (NASDAQ:DCOM) 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, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Dime Community Bancshares

Dime Community Bancshares Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Albert McCoy for US$399k worth of shares, at about US$16.87 per share. Even though the purchase was made at a significantly lower price than the recent price (US$20.63), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 32.40k shares worth US$595k. But they sold 6.50k shares for US$165k. Overall, Dime Community Bancshares insiders were net buyers during the last year. 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!

Dime Community Bancshares 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.

Dime Community Bancshares Insiders Are Selling The Stock

The last three months saw significant insider selling at Dime Community Bancshares. In total, Executive VP & Chief Risk Officer Christopher Porzelt dumped US$98k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of Dime Community Bancshares

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. We usually like to see fairly high levels of insider ownership. Insiders own 7.3% of Dime Community Bancshares shares, worth about US$59m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Dime Community Bancshares Insiders?

An insider sold stock recently, but they haven't been buying. But we take heart from prior transactions. It's good to see insiders are shareholders. So the recent selling doesn't worry us too much. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dime Community Bancshares. Case in point: We've spotted 1 warning sign for Dime Community Bancshares you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.