Some Nicolet Bankshares, Inc. (NYSE:NIC) shareholders may be a little concerned to see that the Executive VP & Secretary, Eric Witczak, recently sold a substantial US$1.5m worth of stock at a price of US$97.18 per share. That's a big disposal, and it decreased their holding size by 31%, which is notable but not too bad.

The Last 12 Months Of Insider Transactions At Nicolet Bankshares

Notably, that recent sale by Eric Witczak is the biggest insider sale of Nicolet Bankshares shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$103. 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. It is worth noting that this sale was only 31% of Eric Witczak's holding.

Over the last year we saw more insider selling of Nicolet Bankshares shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Nicolet Bankshares insiders own about US$173m worth of shares (which is 12% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Nicolet Bankshares Insiders?

Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Nicolet Bankshares makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Nicolet Bankshares. Every company has risks, and we've spotted 1 warning sign for Nicolet Bankshares you should know about.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com