Princeton Bancorp insiders get good value for their $1.97 million investment

Insiders who bought Princeton Bancorp, Inc. (NASDAQ:BPRN) shares were handsomely rewarded last week over the past 12 months. The company’s market value increased by $23 million as the stock gained 11% over the same period. Put another way, the original $1.97 million acquisition is now worth $2.37 million.

While we don’t believe shareholders should simply follow insider transactions, logic dictates that you should pay attention to whether insiders are buying or selling shares.

Check out our latest analysis for Princeton Bancorp

The last 12 months of insider transactions at Princeton Bancorp

Independent Director Martin Tuchman made the largest insider purchase of the last 12 months. This single transaction was for $609,000 worth of shares at a price of $32.13 apiece. While we like to see buys, this purchase was made well below the current price of $37.30. While this suggests that insiders believe the stock is undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.

Martin Tuchman bought 63.66K shares during the year. The average price per share was $31.01. You can see the insider transactions (by companies and individuals) over the last year in the graph below. If you want to know exactly who sold, for how much and when, just click on the graph below!

There are many other companies whose insiders buy up stock. You probably know this too. not don’t want to miss this free List of undervalued small cap companies that are being bought by insiders.

Princeton Bancorp insiders recently purchased shares

At Princeton Bancorp, we observed significantly more insider buying than insider selling in the last quarter. In total, Independent Director Martin Tuchman bought $334,000 worth of shares during that time. But we saw Executive VP & Chief Lending Officer Stephanie Adkins sell $37,000 worth of shares. We believe insiders may be optimistic about the future, as insiders were net buyers of shares.

Insider ownership

Looking at a company’s total insider share holdings can help you judge whether they are well aligned with common shareholders. I think it’s a good sign when insiders own a significant number of shares in the company. Princeton Bancorp insiders own about $60 million worth of shares, representing 26% of the company. This level of insider ownership is good, but not particularly remarkable. It certainly suggests a reasonable level of alignment.

So what does this data say about insiders at Princeton Bancorp?

The recent insider purchase is certainly positive. And an analysis of transactions over the past year also makes us confident. Since insiders also own a significant amount of Princeton Bancorp, we believe they are quite confident about a bright future. While it is good to know about insider ownership and transactions, we make sure to also consider the risks a stock poses before making an investment decision. Every company has risks, and we have found 2 warning signs for Princeton Bancorp (1 of them a bit unpleasant!) that you should know.

Naturally, If you look elsewhere, you may find a fantastic investment. So take a look at the free List of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulator. Currently, we only consider open market transactions and private disposals of direct holdings, but not derivative transactions or indirect holdings.

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