Don't Ignore The Fact That This Insider Just Sold Some Shares In Nicolet Bankshares, Inc. (NASDAQ:NCBS)

We'd be surprised if Nicolet Bankshares, Inc. (NASDAQ:NCBS) shareholders haven't noticed that an insider, Patrick Madson, recently sold US$135k worth of stock at US$67.54 per share. The eyebrow raising move amounted to a reduction of 18% in their holding.

See our latest analysis for Nicolet Bankshares

Nicolet Bankshares Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the EVP, Secretary & Director, Michael Daniels, sold US$1.4m worth of shares at a price of US$61.00 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$65.54. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 20% of Michael Daniels's holding.

In the last twelve months insiders purchased 603.00 shares for US$40k. On the other hand they divested 55523 shares, for US$3.6m. All up, insiders sold more shares in Nicolet Bankshares than they bought, over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Nicolet Bankshares insiders own 12% of the company, worth about US$82m. 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 Nicolet Bankshares Insiders?

Unfortunately, there has been more insider selling of Nicolet Bankshares stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Nicolet Bankshares is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd think twice before buying! 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 example - Nicolet Bankshares has 1 warning sign we think 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

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