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

By
Simply Wall St
Published
May 05, 2021
NasdaqGS:INDB

Anyone interested in Independent Bank Corp. (NASDAQ:INDB) should probably be aware that the COO and Executive VP of Consumer & Business Banking, Robert Cozzone, recently divested US$161k worth of shares in the company, at an average price of US$82.73 each. However, the silver lining is that the sale only reduced their total holding by 7.4%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for Independent Bank

Independent Bank Insider Transactions Over The Last Year

Notably, that recent sale by Robert Cozzone is the biggest insider sale of Independent Bank shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$81.39. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

All up, insiders sold more shares in Independent Bank than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Independent Bank

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.4% of Independent Bank shares, worth about US$40m. 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 Independent Bank Insiders?

An insider hasn't bought Independent Bank stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Independent Bank 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, but not derivative transactions.

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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.
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