By selling US$392k worth of Orange County Bancorp, Inc. (NASDAQ:OBT) stock at an average sell price of US$48.09 over the last year, insiders seemed to have made the most of their holdings. The company's market cap plunged by US$54m after price dropped by 15% last week but insiders were able to limit their loss to an extent.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Orange County Bancorp
Orange County Bancorp Insider Transactions Over The Last Year
The insider, Michael Coulter, made the biggest insider sale in the last 12 months. That single transaction was for US$90k worth of shares at a price of US$46.09 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$53.70. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 34% of Michael Coulter's stake.
Over the last year, we can see that insiders have bought 2.72k shares worth US$94k. On the other hand they divested 8.15k shares, for US$392k. In total, Orange County Bancorp insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Orange County Bancorp Insiders Are Selling The Stock
The last quarter saw substantial insider selling of Orange County Bancorp shares. In total, insiders sold US$246k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Does Orange County Bancorp Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Orange County Bancorp insiders own 16% of the company, worth about US$47m. 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 Do The Orange County Bancorp Insider Transactions Indicate?
Insiders haven't bought Orange County Bancorp stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But since Orange County Bancorp is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Orange County Bancorp. For example - Orange County Bancorp has 2 warning signs we think you should be aware of.
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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 of direct interests only, but not derivative transactions or indirect interests.
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