Those following along with Nicolet Bankshares, Inc. (NASDAQ:NCBS) will no doubt be intrigued by the recent purchase of shares by John Dykema, Independent Director of the company, who spent a stonking US$759k on stock at an average price of US$75.90. Not only is that a big swing, but it increased their holding size by 14%, which is definitely great to see.
The Last 12 Months Of Insider Transactions At Nicolet Bankshares
In fact, the recent purchase by John Dykema was the biggest purchase of Nicolet Bankshares shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$75.35 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders paid US$2.5m for 33.64k shares. On the other hand they divested 6.40k shares, for US$575k. In the last twelve months there was more buying than selling by Nicolet Bankshares insiders. 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!
Nicolet Bankshares is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. We usually like to see fairly high levels of insider ownership. Nicolet Bankshares insiders own about US$93m worth of shares. That equates to 9.2% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Nicolet Bankshares Tell Us?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Nicolet Bankshares insiders are well aligned, and that they may think the share price is too low. 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. You'd be interested to know, that we found 2 warning signs for Nicolet Bankshares and we suggest you have a look.
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.