Those following along with Nicolet Bankshares, Inc. (NYSE:NIC) will no doubt be intrigued by the recent purchase of shares by John Dykema, Independent Director of the company, who spent a stonking US$757k on stock at an average price of US$78.99. Not only is that a big swing, but it increased their holding size by 12%, which is definitely great to see.
Nicolet Bankshares Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Director John Dykema was not the only time they bought Nicolet Bankshares shares this year. They previously made an even bigger purchase of US$759k worth of shares at a price of US$75.91 per share. That implies that an insider found the current price of US$81.09 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. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months insiders purchased 51.73k shares for US$4.0m. But they sold 6.40k shares for US$575k. In total, Nicolet Bankshares insiders bought more than they sold over the last year. 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!
Nicolet Bankshares is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Nicolet Bankshares
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 Nicolet Bankshares insiders own 9.2% of the company, worth about US$100m. 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 Nicolet Bankshares Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Nicolet Bankshares. One for the watchlist, at least! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 1 warning sign for Nicolet Bankshares you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, 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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