Director of Norwood Financial Ronald Schmalzle Buys 98% More Shares

Potential Norwood Financial Corp. (NASDAQ:NWFL) shareholders may wish to note that the Director, Ronald Schmalzle, recently bought US$200k worth of stock, paying US$26.00 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 98%.

Check out our latest analysis for Norwood Financial

Norwood Financial Insider Transactions Over The Last Year

In fact, the recent purchase by Ronald Schmalzle was the biggest purchase of Norwood Financial shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$27.25 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months Norwood Financial insiders were buying shares, but not selling. 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!

Norwood Financial is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Norwood Financial Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 Norwood Financial insiders own 9.8% of the company, worth about US$21m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Norwood Financial Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Insiders likely see value in Norwood Financial shares, given these transactions (along with notable insider ownership of the company). 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. In terms of investment risks, we've identified 1 warning sign with Norwood Financial and understanding it should be part of your investment process.

But note: Norwood Financial 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.