Even if it's not a huge purchase, we think it was good to see that Brian Brunner, a Orrstown Financial Services, Inc. (NASDAQ:ORRF) insider, recently shelled out US$97k to buy stock, at US$34.76 per share. Although the purchase is not a big one, increasing their shareholding by only 6.2%, it can be interpreted as a good sign.
Orrstown Financial Services Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Executive VP & Market President for the Maryland Region, Christopher Holt, for US$273k worth of shares, at about US$34.16 per share. That means that an insider was selling shares at below the current price (US$34.51). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 32% of Christopher Holt's stake.
In the last twelve months insiders purchased 5.10k shares for US$173k. On the other hand they divested 12.00k shares, for US$425k. All up, insiders sold more shares in Orrstown Financial Services than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 4.5% of Orrstown Financial Services shares, worth about US$30m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Orrstown Financial Services Tell Us?
The recent insider purchases are heartening. But we can't say the same for the transactions over the last 12 months. While recent transactions indicate confidence in Orrstown Financial Services, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. Overall they seem reasonably aligned. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Orrstown Financial Services. Our analysis shows 3 warning signs for Orrstown Financial Services (1 makes us a bit uncomfortable!) and we strongly recommend you look at them before investing.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
