Have NBT Bancorp Insiders Been Selling Stock?

Some NBT Bancorp Inc. (NASDAQ:NBTB) shareholders may be a little concerned to see that the Independent Director, VanNess Robinson, recently sold a substantial US$3.1m worth of stock at a price of US$43.92 per share. That's a big disposal, and it decreased their holding size by 13%, which is notable but not too bad.

Check out our latest analysis for NBT Bancorp

The Last 12 Months Of Insider Transactions At NBT Bancorp

In fact, the recent sale by VanNess Robinson was the biggest sale of NBT Bancorp shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$44.83). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 13% of VanNess Robinson's holding.

Over the last year, we can see that insiders have bought 2.35k shares worth US$85k. But they sold 80.97k shares for US$3.5m. Over the last year we saw more insider selling of NBT Bancorp shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like NBT Bancorp better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of NBT Bancorp

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 NBT Bancorp insiders own 3.2% of the company, worth about US$67m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About NBT Bancorp Insiders?

Insiders sold NBT Bancorp shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. 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. In terms of investment risks, we've identified 1 warning sign with NBT Bancorp and understanding this should be part of your investment process.

But note: NBT Bancorp may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.