Timothy Delaney Bought 19% More Shares In NBT Bancorp

Investors who take an interest in NBT Bancorp Inc. (NASDAQ:NBTB) should definitely note that the Independent Director, Timothy Delaney, recently paid US$40.98 per share to buy US$410k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 19%.

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NBT Bancorp Insider Transactions Over The Last Year

In fact, the recent purchase by Independent Director Timothy Delaney was not their only trade of NBT Bancorp shares this year. They previously made a sale of -US$2.1m worth of shares at a price of US$51.47 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$41.61). So it may not tell us anything about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid US$849k for 20.17k shares. But they sold 93.17k shares for US$4.5m. In total, NBT Bancorp insiders sold more 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!

View our latest analysis for NBT Bancorp

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Insider Ownership

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that NBT Bancorp insiders own 2.6% of the company, worth about US$56m. 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 Do The NBT Bancorp Insider Transactions Indicate?

Unfortunately, there has been more insider selling of NBT Bancorp stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, NBT Bancorp makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. 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.

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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.