We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 DNB Financial Corporation (NASDAQ:DNBF), you may well want to know whether insiders have been buying or selling.
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, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
See our latest analysis for DNB Financial
DNB Financial Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when Executive VP & Chief Accounting Officer Bruce Moroney sold US$169k worth of shares at a price of US$35.93 per share. That means that an insider was selling shares at around the current price of US$26.96. While their view may have changed since the sale, this is not a particularly positive fact. We generally tread carefully if insiders have been selling on market, even if they sold slightly above the current price.
In the last twelve months insiders purchased 5.02k shares for US$176k. On the other hand they divested 15.18k shares, for US$520k. Over the last year we saw more insider selling of DNB Financial shares, than buying. They sold for an average price of about US$34.24. It’s not particularly great to see insiders were selling shares around current prices. Since insiders sell for many reasons, we wouldn’t put too much weight on it. You can see a visual depiction of insider transactions over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like DNB Financial better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
DNB Financial Insiders Are Selling The Stock
The last quarter saw substantial insider selling of DNB Financial shares. Specifically, insiders ditched US$51k worth of shares in that time, and we didn’t record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.