Don't Ignore The Fact That This Insider Just Sold Some Shares In Independent Bank Corp. (NASDAQ:INDB)

By
Simply Wall St
Published
February 06, 2021
NasdaqGS:INDB

We note that the Independent Bank Corp. (NASDAQ:INDB) CEO, President & Director, Christopher Oddleifson, recently sold US$82k worth of stock for US$77.00 per share. However we note that the sale only shrunk their holding by 1.1%.

Check out our latest analysis for Independent Bank

Independent Bank Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the COO and Executive VP of Consumer & Business Banking, Robert Cozzone, for US$252k worth of shares, at about US$72.02 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$76.85. 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. 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. This single sale was just 13% of Robert Cozzone's stake.

All up, insiders sold more shares in Independent Bank than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NasdaqGS:INDB Insider Trading Volume February 6th 2021

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

Does Independent Bank Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Independent Bank insiders own about US$35m worth of shares. That equates to 1.4% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Independent Bank Tell Us?

The insider sales have outweighed the insider buying, at Independent Bank, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Independent Bank. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Independent Bank.

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, but not derivative transactions.

Promoted
When trading Independent Bank or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account.


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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020


Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.


Simply Wall St character - Warren

Simply Wall St

Simply Wall St is a financial technology startup focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of equity analysts with a public, market-beating track record. Learn more about the team behind Simply Wall St.