This Insider Has Just Sold Shares In Northeast Community Bancorp

We'd be surprised if Northeast Community Bancorp, Inc. (NASDAQ:NECB) shareholders haven't noticed that the President, Jose Collazo, recently sold US$121k worth of stock at US$22.33 per share. However, the silver lining is that the sale only reduced their total holding by 5.0%, so we're hesitant to read anything much into it, on its own.

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The Last 12 Months Of Insider Transactions At Northeast Community Bancorp

In fact, the recent sale by Jose Collazo was the biggest sale of Northeast Community Bancorp shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$22.55, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 5.0% of Jose Collazo's stake.

In total, Northeast Community Bancorp insiders sold more than they bought 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!

Check out our latest analysis for Northeast Community Bancorp

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company 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. It appears that Northeast Community Bancorp insiders own 5.3% of the company, worth about US$14m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Northeast Community Bancorp Tell Us?

Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. While it's good to be aware of 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. Case in point: We've spotted 2 warning signs for Northeast Community Bancorp you should be aware of, and 1 of these can't be ignored.

But note: Northeast Community 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.