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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 Alerus Financial Corporation (NASDAQ:ALRS), 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, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Alerus Financial
The Executive Vice President & Chief Retirement Services Officer Forrest Wilson made the biggest insider purchase in the last 12 months. That single transaction was for US$100k worth of shares at a price of US$19.93 each. That means that an insider was happy to buy shares at around the current price of US$20.77. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Alerus Financial insiders decided to buy shares at close to current prices.
While Alerus Financial insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Alerus Financial
Alerus Financial is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At Alerus Financial Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Alerus Financial. We can see that Executive Vice President & Chief Retirement Services Officer Forrest Wilson paid US$100k for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.
Insider Ownership Of Alerus Financial
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. Alerus Financial insiders own about US$26m worth of shares. That equates to 4.9% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.