We'd be surprised if Pathfinder Bancorp, Inc. (NASDAQ:PBHC) shareholders haven't noticed that the Independent Director, Eric Allyn, recently sold US$137k worth of stock at US$16.80 per share. That sale was 17% of their holding, so it does make us raise an eyebrow.
Pathfinder Bancorp Insider Transactions Over The Last Year
Notably, that recent sale by Eric Allyn is the biggest insider sale of Pathfinder Bancorp shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$17.77). 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. We note that the biggest single sale was only 17% of Eric Allyn's holding.
Over the last year, we can see that insiders have bought 9.39k shares worth US$113k. On the other hand they divested 15.24k shares, for US$249k. All up, insiders sold more shares in Pathfinder Bancorp than they bought, 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!
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Does Pathfinder Bancorp Boast High 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. Pathfinder Bancorp insiders own about US$21m worth of shares. That equates to 20% 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 Do The Pathfinder Bancorp Insider Transactions Indicate?
Insiders haven't bought Pathfinder Bancorp stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! While it's good to be aware of 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. In terms of investment risks, we've identified 3 warning signs with Pathfinder Bancorp and understanding these should be part of your investment process.
Of course Pathfinder Bancorp 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 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.
