Anyone interested in Plumas Bancorp (NASDAQ:PLBC) should probably know that Plumas Bank Executive Vice President and Chief Banking Officer B. North recently sold $235,000 worth of shares in the company, at an average price of $30.46 each. Equally important, this sale actually reduced their stake by 51%, which makes us hardly optimistic about the stock.
The last 12 months of insider trading at Plumas Bancorp
In fact, the recent sale by B. North was the largest sale of shares of Plumas Bancorp by an insider in the past twelve months, according to our records. This means that even when the stock price was below the current price of US$33.15, an insider wanted to cash in some shares. Generally, we consider it disheartening when insiders sell below the current price, as it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, this is only a weak signal. This single sale represented 51% of B. North’s interest.
Over the past year, we can see that insiders have purchased 4.33,000 shares worth $149,000. But they sold 9,71,000 shares for US$310,000. In total, Plumas Bancorp insiders have sold more than they bought over the past year. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you want to know exactly who sold, how much and when, just click on the chart below!
If you’re like me, then you not want to miss this free list of growing companies insiders are buying.
Does Plumas Bancorp boast of high insider ownership?
Examining the total insider holdings in a company can help you know if they are well aligned with common shareholders. I think it’s a good sign if insiders have a significant number of shares in the company. Insiders of Plumas Bancorp own approximately $16 million in stock. This equates to 8.3% of the business. While this is a high but not exceptional level of insider ownership, it suffices to indicate some alignment between management and small shareholders.
So what does this data suggest about Plumas Bancorp insiders?
Unfortunately, there have been more insider selling of Plumas Bancorp stock than buying in the past three months. Despite some insider buying, the longer-term picture doesn’t make us much more positive. On the positive side, Plumas Bancorp is making money and increasing its profits. Insider ownership is not particularly high, so this analysis makes us cautious about the company. We would exercise caution before purchasing! So these insider trades can help us build a thesis on the stock, but it’s also helpful to know the risks this company faces. To help you, we found 2 warning signs that you should scan your eye to get a better picture of Plumas Bancorp.
Sure Plumas Bancorp may not be the best stock to buy. So you might want to see this free set of high quality companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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