Insider Spends US$115k Buying More Shares In Provident Bancorp

Investors who take an interest in Provident Bancorp, Inc. (NASDAQ:PVBC) should definitely note that the Director, Dennis Pollack, recently paid US$11.47 per share to buy US$115k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 27%.

Check out our latest analysis for Provident Bancorp

Provident Bancorp Insider Transactions Over The Last Year

In fact, the recent purchase by Dennis Pollack was the biggest purchase of Provident Bancorp shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$11.08 (the recent price), an insider wanted to purchase shares. 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.

While Provident Bancorp insiders bought shares during the last year, they didn't sell. Their average price was about US$10.45. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Provident Bancorp 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 4.3% of Provident Bancorp shares, worth about US$8.0m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Provident Bancorp Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Provident Bancorp insiders are expecting a bright future. 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. You'd be interested to know, that we found 1 warning sign for Provident Bancorp and we suggest you have a look.

But note: Provident Bancorp 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.