Even if it’s not a huge purchase, we think it was good to see that David Karp, the Independent Director of Northrim BanCorp, Inc. (NASDAQ:NRIM) recently shelled out US$82k to buy stock, at US$41.03 per share. While we’re hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 26%.
Northrim BanCorp Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Director David Karp was not the only time they bought Northrim BanCorp shares this year. They previously made an even bigger purchase of US$108k worth of shares at a price of US$43.35 per share. That means that an insider was happy to buy shares at above the current price of US$40.74. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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.
Over the last year, we can see that insiders have bought 11.26k shares worth US$480k. But they sold 1.32k shares for US$57k. Overall, Northrim BanCorp insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Northrim 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.
Insider Ownership of Northrim BanCorp
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Northrim BanCorp insiders own 2.5% of the company, worth about US$5.9m. Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!
What Might The Insider Transactions At Northrim BanCorp Tell Us?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Northrim BanCorp stock. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Northrim BanCorp.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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, 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.