Anyone interested in Independent Bank Corp. (NASDAQ:INDB) should probably be aware that the Director, Gerard Nadeau, recently divested US$449k worth of shares in the company, at an average price of US$84.69 each. That sale was 23% of their holding, so it does make us raise an eyebrow.

The Last 12 Months Of Insider Transactions At Independent Bank

The insider, Kenneth Ansin, made the biggest insider sale in the last 12 months. That single transaction was for US$10m worth of shares at a price of US$69.94 each. That means that an insider was selling shares at slightly below the current price (US$83.98). 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. We note that the biggest single sale was only 24% of Kenneth Ansin's holding.

Insiders in Independent Bank didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does Independent Bank Boast High 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. Insiders own 1.3% of Independent Bank shares, worth about US$51m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Independent Bank Tell Us?

Insiders haven't bought Independent Bank stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, Independent Bank makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Independent Bank. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Independent Bank.

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.

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.