Dime Community Bancshares Insiders Sold US$506k Of Shares Suggesting Hesitancy

Dime Community Bancshares, Inc. (NASDAQ:DCOM) shareholders might have a reason to worry after multiple insiders sold their shares over the last year. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View 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 sale was by the CEO, COO, Stuart Lubow, for US$408k worth of shares, at about US$20.53 per share. So what is clear is that an insider saw fit to sell at around the current price of US$19.35. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Happily, we note that in the last year insiders paid US$498k for 29.60k shares. But insiders sold 24.50k shares worth US$506k. In total, Dime Community Bancshares insiders sold more than they bought over the last year. 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!

I will like Dime Community Bancshares better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 7.2% of Dime Community Bancshares shares, worth about US$53m. 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 Do The Dime Community Bancshares Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Dime Community Bancshares shares in the last quarter. Still, the insider transactions at Dime Community Bancshares in the last 12 months are not very heartening. But it's good to see that insiders own shares in the company. Of course, the future is what matters most. So if you are interested in Dime Community Bancshares, you should check out this free report on analyst forecasts for the company.

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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