Have Independent Bank Insiders Been Selling Stock?

Anyone interested in Independent Bank Corporation (NASDAQ:IBCP) should probably be aware that the Executive Vice President of Operations & Retail Banking, Larry Daniel, recently divested US$151k worth of shares in the company, at an average price of US$39.15 each. The eyebrow raising move amounted to a reduction of 13% in their holding.

View our latest analysis for Independent Bank

Independent Bank Insider Transactions Over The Last Year

In fact, the recent sale by Larry Daniel was the biggest sale of Independent Bank shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$38.28. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In total, Independent Bank 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Independent Bank Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Independent Bank insiders own 2.3% of the company, worth about US$18m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Independent Bank Tell Us?

Unfortunately, there has been more insider selling of Independent Bank stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Independent Bank makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 1 warning sign with Independent Bank and understanding it should be part of your investment process.

Of course Independent Bank 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 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.