Quite a few insiders have dramatically grown their holdings in First Northwest Bancorp (NASDAQ:FNWB) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for First Northwest Bancorp
The Independent Director Dana Behar made the biggest insider purchase in the last 12 months. That single transaction was for US$840k worth of shares at a price of US$10.50 each. That implies that an insider found the current price of US$11.48 per share to be enticing. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
Happily, we note that in the last year insiders paid US$1.0m for 95.32k shares. But they sold 8.12k shares for US$126k. In the last twelve months there was more buying than selling by First Northwest Bancorp insiders. 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!
First Northwest Bancorp is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
It's good to see that First Northwest Bancorp insiders have made notable investments in the company's shares. Overall, three insiders shelled out US$112k for shares in the company -- and none sold. This makes one think the business has some good points.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that First Northwest Bancorp insiders own 7.2% of the company, worth about US$7.3m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that First Northwest Bancorp insiders are expecting a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 1 warning sign for First Northwest Bancorp and we suggest you have a look.
Of course First Northwest 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 of direct interests only, but not derivative transactions or indirect interests.
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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.