Insiders who purchased New York Community Bancorp, Inc. (NYSE:NYCB) shares in the past 12 months are unlikely to be deeply impacted by the stock's 4.9% decline over the past week. Reason being, despite the recent loss, insiders original purchase value of US$232k is now worth US$239k.

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.

See our latest analysis for New York Community Bancorp

The Last 12 Months Of Insider Transactions At New York Community Bancorp

Over the last year, we can see that the biggest insider purchase was by Independent Director Ronald Rosenfeld for US$232k worth of shares, at about US$9.27 per share. So it's clear an insider wanted to buy, at around the current price, which is US$9.54. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the New York Community Bancorp insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Ronald Rosenfeld.

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!

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. We usually like to see fairly high levels of insider ownership. It appears that New York Community Bancorp insiders own 1.6% of the company, worth about US$72m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About New York Community Bancorp Insiders?

The fact that there have been no New York Community Bancorp insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in New York Community Bancorp and we see no evidence to suggest they are worried about the future. 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. At Simply Wall St, we found 1 warning sign for New York Community Bancorp that deserve your attention before buying any shares.

Of course New York Community Bancorp may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.