Don't Ignore The Insider Selling In John Marshall Bancorp

We'd be surprised if John Marshall Bancorp, Inc. (NASDAQ:JMSB) shareholders haven't noticed that the Independent Director, O. Mahan, recently sold US$107k worth of stock at US$24.27 per share. On the bright side, that sale was only 4.1% of their holding, so we doubt it's very meaningful, on its own.

View our latest analysis for John Marshall Bancorp

The Last 12 Months Of Insider Transactions At John Marshall Bancorp

Notably, that recent sale by O. Mahan is the biggest insider sale of John Marshall Bancorp 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$22.98. 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.

In total, John Marshall Bancorp insiders sold more 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

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. Insiders own 12% of John Marshall Bancorp shares, worth about US$36m. 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 John Marshall Bancorp Tell Us?

Insiders sold John Marshall Bancorp shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. But since John Marshall Bancorp is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 2 warning signs for John Marshall Bancorp (1 doesn't sit too well with us) you should be aware of.

Of course John Marshall Bancorp 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.

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

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.