Should You Take Comfort From Insider Transactions At Randolph Bancorp, Inc. (NASDAQ:RNDB)?

We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Randolph Bancorp, Inc. (NASDAQ:RNDB), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’

View our latest analysis for Randolph Bancorp

Randolph Bancorp Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Senior VP & Chief Information Officer Thomas Foresta for US$120k worth of shares, at about US$16.15 per share. So it’s clear an insider wanted to buy, even at a higher price. Their view may have changed since then, but at least it shows they felt optimistic at the time. It’s not at all bad to see insiders buy shares at or above current prices.

Over the last year, we can see that insiders have bought 27.93k shares worth US$449k. Overall, Randolph Bancorp insiders were net buyers last year. They paid about US$16.07 on average. I’d consider this a positive as it suggests insiders see value at around the current price, which is US$14.00. You can see the insider transactions 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!

NasdaqGM:RNDB Insider Trading December 14th 18
NasdaqGM:RNDB Insider Trading December 14th 18

Randolph Bancorp is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Have Randolph Bancorp Insiders Traded Recently?

There was only a small bit of insider buying, worth US$4.6k, in the last three months. Overall, we don’t think these recent trades are particularly informative, one way or the other.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Randolph Bancorp insiders own about US$7.4m worth of shares (which is 8.7% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Randolph Bancorp Insiders?

Insider purchases have outweighed sales, in the last three months. But the net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we’d be more comfortable if they owned more Randolph Bancorp stock. Of course, the future is what matters most. So if you are interested in Randolph Bancorp, you should check out this free report on analyst forecasts for the company.

But note: Randolph 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.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.