Whilst it may not be a huge deal, we thought it was good to see that the Northrim BanCorp, Inc. (NASDAQ:NRIM) Independent Director, David Karp, recently bought US$82k worth of stock, for US$41.03 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 26%.
The Last 12 Months Of Insider Transactions At Northrim BanCorp
In fact, the recent purchase by Independent Director David Karp was not their only acquisition of Northrim BanCorp shares this year. They previously made an even bigger purchase of US$108k worth of shares at a price of US$43.35 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$40.74). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid US$480k for 11.26k shares. On the other hand they divested 1.32k shares, for US$57k. In total, Northrim BanCorp insiders bought more than they sold 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Northrim BanCorp Boast High 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. Insiders own 2.5% of Northrim BanCorp shares, worth about US$5.9m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Northrim BanCorp Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Northrim BanCorp insiders are reasonably well aligned, and optimistic for the future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
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.