Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Farmers National Banc Corp. (NASDAQ:FMNB), that sends out a positive message to the company’s shareholders.
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.
The Last 12 Months Of Insider Transactions At Farmers National Banc
The Independent Director Edward Muransky made the biggest insider purchase in the last 12 months. That single transaction was for US$275k worth of shares at a price of US$14.83 each. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being US$14.16). It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. 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.
In the last twelve months insiders purchased 63.50k shares for US$935k. But they sold 3.20k shares for US$49k. Overall, Farmers National Banc insiders were net buyers during the last year. 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!
Farmers National Banc 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.
Insiders At Farmers National Banc Have Bought Stock Recently
It’s good to see that Farmers National Banc insiders have made notable investments in the company’s shares. Not only was there no selling that we can see, but they collectively bought US$147k worth of shares. That shows some optimism about the company’s future.
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Farmers National Banc insiders own about US$47m worth of shares. That equates to 9.7% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Farmers National Banc Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Farmers National Banc insiders are well aligned, and that they may think the share price is too low. Of course, the future is what matters most. So if you are interested in Farmers National Banc, you should check out this free report on analyst forecasts for the company.
But note: Farmers National Banc 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.
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.
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