Executive Vice President of National Sales Of Northpointe Bancshares Sold 100% Of Their Shares

Anyone interested in Northpointe Bancshares, Inc. (NYSE:NPB) should probably be aware that the Executive Vice President of National Sales, Amy Butler, recently divested US$290k worth of shares in the company, at an average price of US$17.82 each. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn't exactly instill confidence.

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The Last 12 Months Of Insider Transactions At Northpointe Bancshares

Over the last year, we can see that the biggest insider sale was by the Independent Director, Robert De Vlieger, for US$1.4m worth of shares, at about US$14.50 per share. That means that even when the share price was below the current price of US$17.24, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 11% of Robert De Vlieger's stake.

Over the last year, we can see that insiders have bought 17.74k shares worth US$258k. But they sold 297.20k shares for US$4.6m. In total, Northpointe Bancshares insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Northpointe Bancshares

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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Northpointe Bancshares insiders own 35% of the company, currently worth about US$209m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Northpointe Bancshares Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Northpointe Bancshares is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Northpointe Bancshares and we suggest you have a look.

But note: Northpointe Bancshares may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.