We'd be surprised if Unity Bancorp, Inc. (NASDAQ:UNTY) shareholders haven't noticed that the Executive VP & CFO, George Boyan, recently sold US$123k worth of stock at US$46.34 per share. However, the silver lining is that the sale only reduced their total holding by 5.3%, so we're hesitant to read anything much into it, on its own.

The Last 12 Months Of Insider Transactions At Unity Bancorp

Notably, that recent sale by George Boyan is the biggest insider sale of Unity Bancorp shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$46.61, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 5.3% of George Boyan's holding.

Insiders in Unity Bancorp didn't buy any shares in 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!

I will like Unity Bancorp better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Unity Bancorp insiders own about US$51m worth of shares. That equates to 11% of the company. 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 Unity Bancorp Insiders?

Insiders sold Unity Bancorp shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that Unity Bancorp is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Unity Bancorp.

But note: Unity Bancorp 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 of direct interests only, but not derivative transactions or indirect interests.

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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.