Have Insiders Been Buying Bar Harbor Bankshares (NYSEMKT:BHB) Shares This Year?

Posted by on Jan 7, 2019 in Local News | Comments Off on Have Insiders Been Buying Bar Harbor Bankshares (NYSEMKT:BHB) Shares This Year?

It is not uncommon to see companies perform well in the years after insiders buy shares.
On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business.
So before you buy or sell Bar Harbor Bankshares (NYSEMKT:BHB), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market.
However, most countries require that the company discloses such transactions to the market.

Insider transactions are not the most important thing when it comes to long-term investing.
But it is perfectly logical to keep tabs on what insiders are doing.
For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’

Check out our latest analysis for Bar Harbor Bankshares

Bar Harbor Bankshares Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Director Scott Toothaker bought US$193k worth of shares at a price of US$24.13 per share.
That means that even when the share price was higher, 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.
That purchase may suggest an expectation of positive returns over the long term.

Over the last year, we can see that insiders have bought 29.75k shares worth US$756k.
On the other hand they divested 9.40k shares, for US$256k.
In total, Bar Harbor Bankshares insiders bought more than they sold over the last year.
Their average price was about US$25.42.
I’d consider this a positive as it suggests insiders see value at around the current price, which is US$23.07.
The chart below shows insider transactions over the last year.
If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

AMEX:BHB Insider Trading January 4th 19

AMEX:BHB Insider Trading January 4th 19

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insiders at Bar Harbor Bankshares Have Bought Stock Recently

Over the last three months, we’ve seen significantly more insider buying, than insider selling, at Bar Harbor Bankshares.
13 insiders bought US$555k worth of shares.
But we did see insider selling worth US$74k.
The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Insider Ownership of Bar Harbor 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.
Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term.
Bar Harbor Bankshares insiders own about US$9.6m worth of shares (which is 2.7% of the company).
This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Bar Harbor Bankshares Tell Us?

It’s certainly positive to see the recent insider purchases.
And the longer term insider transactions also give us confidence.
On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Bar Harbor Bankshares stock.
Along with insider transactions, I recommend checking if Bar Harbor Bankshares is growing revenue. This free chart of historic revenue and earnings should make that easy.

Of course Bar Harbor Bankshares may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

Article source: https://simplywall.st/stocks/us/banks/nysemkt-bhb/bar-harbor-bankshares/news/have-insiders-been-buying-bar-harbor-bankshares-nysemktbhb-shares-this-year/