Have Independent Bank Corp. (NASDAQ:INDB) Insiders Been Selling Their Stock?

Simply Wall St
March 18, 2022
Source: Shutterstock

We'd be surprised if Independent Bank Corp. (NASDAQ:INDB) shareholders haven't noticed that the Director, Gerard Nadeau, recently sold US$127k worth of stock at US$84.94 per share. On the bright side, that sale was only 5.7% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Independent Bank

The Last 12 Months Of Insider Transactions At Independent Bank

In the last twelve months, the biggest single sale by an insider was when the Executive VP, Edward Seksay, sold US$737k worth of shares at a price of US$93.43 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$84.37). So it may not tell us anything about how insiders feel about the current share price.

Independent Bank insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NasdaqGS:INDB Insider Trading Volume March 18th 2022

I will like Independent Bank 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 of Independent Bank

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Independent Bank insiders own about US$32m worth of shares. That equates to 0.8% 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.

So What Do The Independent Bank Insider Transactions Indicate?

Insiders haven't bought Independent Bank stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Independent Bank has 3 warning signs and it would be unwise to ignore them.

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.

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.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.