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From what we can see, insiders were net buyers in Princeton Bancorp, Inc.'s (NASDAQ:BPRN ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
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.
Check out our latest analysis for Princeton Bancorp
The Last 12 Months Of Insider Transactions At Princeton Bancorp
Over the last year, we can see that the biggest insider purchase was by Independent Director Martin Tuchman for US$609k worth of shares, at about US$32.13 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$37.30. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Martin Tuchman bought a total of 70.66k shares over the year at an average price of US$31.65. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Princeton 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.
Princeton Bancorp Insiders Are Selling The Stock
We've seen more insider selling than insider buying at Princeton Bancorp recently. In total, insiders sold US$370k worth of shares in that time. On the flip side, Independent Director Martin Tuchman spent US$262k on purchasing shares. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.
Insider Ownership
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. Insiders own 26% of Princeton Bancorp shares, worth about US$59m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Princeton Bancorp Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at Princeton Bancorp, in the last three months. On the other hand, the insider transactions over the last year are encouraging. And insiders do own shares. So we're not overly bothered by recent selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Princeton Bancorp and understanding these should be part of your investment process.