Yahoo Finance Partners Bancorp (NASDAQ:PTRS) insiders' US$1.0m purchase saw a boost of US$297k after market cap rose US$18m
Last week, Partners Bancorp (NASDAQ:PTRS) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 12% last week, resulting in a US$18m increase in the company's market worth. Put another way, the original US$1.0m acquisition is now worth US$1.3m.
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.
Check out our latest analysis for Partners Bancorp
Partners Bancorp Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Michael Clarke bought US$321k worth of shares at a price of US$7.38 per share. Even though the purchase was made at a significantly lower price than the recent price (US$9.72), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months Partners Bancorp insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Partners Bancorp is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Partners Bancorp Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Partners Bancorp insiders own 45% of the company, worth about US$78m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Partners Bancorp Insider Transactions Indicate?
The fact that there have been no Partners Bancorp insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Partners Bancorp insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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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