Yahoo Finance Bullish insiders bet US$2.9m on Nicolet Bankshares, Inc. (NYSE:NIC)
Quite a few insiders have dramatically grown their holdings in Nicolet Bankshares, Inc. (NYSE:NIC) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Nicolet Bankshares
The Last 12 Months Of Insider Transactions At Nicolet Bankshares
Over the last year, we can see that the biggest insider purchase was by Independent Director John Dykema for US$759k worth of shares, at about US$75.91 per share. That implies that an insider found the current price of US$79.79 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. 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 Nicolet Bankshares insiders decided to buy shares at close to current prices.
In the last twelve months insiders purchased 37.13k shares for US$2.9m. But they sold 5.50k shares for US$506k. Overall, Nicolet Bankshares insiders were net buyers during the last year. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Nicolet Bankshares insiders own 13% of the company, currently worth about US$152m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Nicolet Bankshares Insider Transactions Indicate?
The fact that there have been no Nicolet Bankshares insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Nicolet Bankshares insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the 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. Case in point: We've spotted 1 warning sign for Nicolet Bankshares you should be aware of.
But note: Nicolet Bankshares may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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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.
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