Insiders Who Sold US$567k Of Peoples Bancorp of North Carolina Made The Right Call

While Peoples Bancorp of North Carolina, Inc. (NASDAQ:PEBK) shareholders have enjoyed a good week with stock up 10%, they need remain vigilant. Even though stock prices were relatively low, insiders elected to sell US$567k worth of stock in the last year, which could indicate some expected downturn.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Peoples Bancorp of North Carolina

Over the last year, we can see that the biggest insider sale was by the insider, Kimberly Leaks, for US$251k worth of shares, at about US$28.91 per share. That means that even when the share price was below the current price of US$31.74, 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 89% of Kimberly Leaks's stake.

Insiders in Peoples Bancorp of North Carolina didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Peoples Bancorp of North Carolina

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Insiders At Peoples Bancorp of North Carolina Have Sold Stock Recently

We have seen a bit of insider selling at Peoples Bancorp of North Carolina, over the last three months. Independent Vice Chairman of the Board James Abernethy sold just US$29k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the volume sold is so low that it really doesn't bother us.

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. We usually like to see fairly high levels of insider ownership. Insiders own 15% of Peoples Bancorp of North Carolina shares, 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 Do The Peoples Bancorp of North Carolina Insider Transactions Indicate?

Our data shows a little more insider selling, but no insider buying, in the last three months. But given the selling was modest, we're not worried. Recent insider selling makes us a little nervous, in light of the broader picture of Peoples Bancorp of North Carolina insider transactions. The modest level of insider ownership is, at least, some comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Peoples Bancorp of North Carolina has 1 warning sign we think you should be aware of.

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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.