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 we’ll take a look at whether insiders have been buying or selling shares in Riverview Bancorp, Inc. (NASDAQ:RVSB).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. 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.’
The Last 12 Months Of Insider Transactions At Riverview Bancorp
Over the last year, we can see that the biggest insider purchase was by Director David Nierenberg for US$73k worth of shares, at about US$8.27 per share. That means that even when the share price was higher, an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. It’s not at all bad to see insiders buy shares at or above current prices.
In the last twelve months insiders paid US$163k for 19.80k shares purchased. Overall, Riverview Bancorp insiders were net buyers last year. The average buy price was around US$8.25. These transactions suggest that insiders have considered the current price of US$7.43 attractive. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Riverview Bancorp is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Riverview Bancorp Have Bought Stock Recently
Over the last quarter, Riverview Bancorp insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$163k worth of shares. This could be interpreted as suggesting a positive outlook.
Does Riverview Bancorp Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 7.1% of Riverview Bancorp shares, worth about US$12m. 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 Riverview Bancorp Insider Transactions Indicate?
It’s certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Riverview Bancorp we think they are probably pretty confident of a bright future. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Riverview Bancorp.
Of course Riverview Bancorp may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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 firstname.lastname@example.org.