Whilst it may not be a huge deal, we thought it was good to see that the Farmers National Banc Corp. (NASDAQ:FMNB) Independent Director, Gregory Bestic, recently bought US$57k worth of stock, for US$14.20 per share. However, it only increased their shares held by 6.1%, and it wasn't a huge purchase by absolute value, either.
Farmers National Banc Insider Transactions Over The Last Year
The Independent Director Edward Muransky made the biggest insider purchase in the last 12 months. That single transaction was for US$275k worth of shares at a price of US$14.83 each. That means that even when the share price was higher than US$14.19 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 112.98k shares worth US$1.8m. But they sold 5.20k shares for US$85k. In total, Farmers National Banc insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Farmers National Banc 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.
Does Farmers National Banc Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Farmers National Banc insiders own about US$46m worth of shares. That equates to 9.5% 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 Farmers National Banc Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Farmers National Banc insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Farmers National Banc that deserve your attention before buying any shares.
Of course Farmers National Banc 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.
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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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