This Insider Has Just Sold Shares In Dime Community Bancshares

Anyone interested in Dime Community Bancshares, Inc. (NASDAQ:DCOM) should probably be aware that the CEO, COO, Stuart Lubow, recently divested US$408k worth of shares in the company, at an average price of US$20.42 each. On the bright side, that sale was only 7.8% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Dime Community Bancshares

Dime Community Bancshares Insider Transactions Over The Last Year

Notably, that recent sale by Stuart Lubow is the biggest insider sale of Dime Community Bancshares shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$20.91). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 7.8% of Stuart Lubow's holding.

In the last twelve months insiders purchased 29.60k shares for US$498k. But insiders sold 26.50k shares worth US$573k. 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Dime Community Bancshares Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 7.2% of Dime Community Bancshares shares, worth about US$58m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Dime Community Bancshares Tell Us?

Insiders sold Dime Community Bancshares shares recently, but they didn't buy any. 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. We'd practice some caution before buying! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

But note: Dime Community Bancshares 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.

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.