Several Rhinebeck Bancorp Insiders Sell Shares Sending Potential Negative Signal

A number of Rhinebeck Bancorp, Inc. (NASDAQ:RBKB) insiders sold their shares in the last year, which may have raised concerns among investors. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.

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 Rhinebeck Bancorp

Over the last year, we can see that the biggest insider sale was by the Chief Credit Officer & Senior VP, James McCardle, for US$65k worth of shares, at about US$13.14 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$11.58. So it is hard to draw any strong conclusion from it.

Over the last year we saw more insider selling of Rhinebeck Bancorp shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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 Rhinebeck Bancorp

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Insiders At Rhinebeck Bancorp Have Sold Stock Recently

The last quarter saw substantial insider selling of Rhinebeck Bancorp shares. Specifically, Chief Credit Officer & Senior VP James McCardle ditched US$65k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of Rhinebeck Bancorp

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own US$3.9m worth of Rhinebeck Bancorp stock, about 3.1% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.

What Might The Insider Transactions At Rhinebeck Bancorp Tell Us?

An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we'd only buy after very careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rhinebeck Bancorp. At Simply Wall St, we've found that Rhinebeck Bancorp has 2 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.

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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.