Whilst it may not be a huge deal, we thought it was good to see that the Orrstown Financial Services, Inc. (NASDAQ:ORRF) Executive VP & CFO, Thomas Brugger, recently bought US$68k worth of stock, for US$13.60 per share. While that isn't the hugest buy, it actually boosted their shareholding by 59%, which is good to see.
Orrstown Financial Services Insider Transactions Over The Last Year
The insider, David Boyle, made the biggest insider sale in the last 12 months. That single transaction was for US$71k worth of shares at a price of US$23.50 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$13.50. So it is hard to draw any strong conclusion from it.
Over the last year, we can see that insiders have bought 15.19k shares worth US$220k. On the other hand they divested 4.50k shares, for US$96k. In the last twelve months there was more buying than selling by Orrstown Financial Services insiders. 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!
Orrstown Financial Services is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Orrstown Financial Services
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. Our data indicates that Orrstown Financial Services insiders own about US$6.5m worth of shares (which is 4.3% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.
So What Do The Orrstown Financial Services Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Orrstown Financial Services stock. 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. Be aware that Orrstown Financial Services is showing 2 warning signs in our investment analysis, and 1 of those can't be ignored...
But note: Orrstown Financial Services 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, 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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