Need To Know: Northfield Bancorp, Inc. (Staten Island, NY) (NASDAQ:NFBK) Insiders Have Been Selling Shares

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Northfield Bancorp, Inc. (Staten Island, NY) (NASDAQ:NFBK).

What Is Insider Selling?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for Northfield Bancorp (Staten Island NY)

The Last 12 Months Of Insider Transactions At Northfield Bancorp (Staten Island NY)

In the last twelve months, the biggest single sale by an insider was when the Consultant, Michael Widmer, sold US$469k worth of shares at a price of US$12.00 per share. That means that an insider was selling shares at around the current price of US$11.86. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year, we can see that insiders have bought 67.00k shares worth US$701k. On the other hand they divested 57.00k shares, for US$715k. All up, insiders sold more shares in Northfield Bancorp (Staten Island NY) 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. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insiders at Northfield Bancorp (Staten Island NY) Have Bought Stock Recently

Over the last quarter, Northfield Bancorp (Staten Island NY) insiders have spent a meaningful amount on shares. In total, insiders bought US$120k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Northfield Bancorp (Staten Island NY) insiders own 4.1% of the company, worth about US$26m. 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 Northfield Bancorp (Staten Island NY) Insiders?

It's certainly positive to see the recent insider purchases. However, the longer term transactions are not so encouraging. We don't take much heart from transactions by Northfield Bancorp (Staten Island NY) insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. So they seem pretty well aligned, overall. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Northfield Bancorp (Staten Island NY) has 3 warning signs we think you should be aware of.

Of course Northfield Bancorp (Staten Island NY) 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, but not derivative transactions.

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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. 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.
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