Insider Buying: The First Internet Bancorp (NASDAQ:INBK) Chairman Just Bought 7.3% More Shares
First Internet Bancorp (NASDAQ:INBK) shareholders (or potential shareholders) will be happy to see that the Chairman, David Becker, recently bought a whopping US$564k worth of stock, at a price of US$28.19. While that only increased their holding size by 7.3%, it is still a big swing by our standards.
View our latest analysis for First Internet Bancorp
The Last 12 Months Of Insider Transactions At First Internet Bancorp
Notably, that recent purchase by David Becker is the biggest insider purchase of First Internet Bancorp shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$28.91. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for First Internet Bancorp share holders is that insiders were buying at near the current price.
In the last twelve months First Internet Bancorp insiders were buying shares, but not selling. They paid about US$19.61 on average. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of First Internet Bancorp
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. It appears that First Internet Bancorp insiders own 5.5% of the company, worth about US$16m. 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 First Internet Bancorp Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest First Internet Bancorp insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing First Internet Bancorp. For example - First Internet Bancorp has 1 warning sign we think you should be aware of.
Of course First Internet 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, but not derivative transactions.
This article by Simply Wall St is general in nature. 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.
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