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Insider Buying: William Edwards Just Spent US$221k On Penns Woods Bancorp, Inc. (NASDAQ:PWOD) Shares

Simply Wall St

Potential Penns Woods Bancorp, Inc. (NASDAQ:PWOD) shareholders may wish to note that insider William Edwards recently bought US$221k worth of stock, paying US$22.13 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 50%.

View our latest analysis for Penns Woods Bancorp

The Last 12 Months Of Insider Transactions At Penns Woods Bancorp

In fact, the recent purchase by insider William Edwards was not their only acquisition of Penns Woods Bancorp shares this year. Earlier in the year, they paid US$32.75 per share in a US$308k purchase. That means that even when the share price was higher than US$25.06 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months insiders purchased 28.85k shares for US$781k. But they sold 1320 shares for US$43k. In the last twelve months there was more buying than selling by Penns Woods Bancorp insiders. They paid about US$27.07 on average. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGS:PWOD Recent Insider Trading June 4th 2020

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

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Penns Woods Bancorp insiders own about US$7.0m worth of shares (which is 4.0% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Penns Woods Bancorp Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Penns Woods Bancorp insiders are expecting a bright future. Along with insider transactions, I recommend checking if Penns Woods Bancorp is growing revenue. This free chart of historic revenue and earnings should make that easy.

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.

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This article by Simply Wall St is general in nature. 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. Thank you for reading.