Insider Buying: The Unity Bancorp, Inc. (NASDAQ:UNTY) Founder & Chairman of the Board Just Bought 34% More Shares

Potential Unity Bancorp, Inc. (NASDAQ:UNTY) shareholders may wish to note that the Founder & Chairman of the Board, David Dallas, recently bought US$245k worth of stock, paying US$24.52 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 34%.

View our latest analysis for Unity Bancorp

The Last 12 Months Of Insider Transactions At Unity Bancorp

Notably, that recent purchase by David Dallas is the biggest insider purchase of Unity Bancorp shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$23.55). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Unity Bancorp insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Unity Bancorp is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Unity Bancorp insiders own about US$33m worth of shares. That equates to 13% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Unity Bancorp Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Unity Bancorp shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in Unity Bancorp, you should check out this free report on analyst forecasts for the company.

Of course Unity Bancorp may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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, but not derivative transactions.

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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.