We'd be surprised if Orange County Bancorp, Inc. (NASDAQ:OBT) shareholders haven't noticed that an insider, Gregory Sousa, recently sold US$118k worth of stock at US$38.75 per share. That sale was 30% of their holding, so it does make us raise an eyebrow.

The Last 12 Months Of Insider Transactions At Orange County Bancorp

In fact, the recent sale by Gregory Sousa was the biggest sale of Orange County Bancorp shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$38.80). 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 30% of Gregory Sousa's holding.

In total, Orange County Bancorp insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Orange County Bancorp insiders own 12% of the company, worth about US$63m. 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 Do The Orange County Bancorp Insider Transactions Indicate?

An insider sold Orange County Bancorp shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But since Orange County Bancorp is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Orange County Bancorp.

Of course Orange County 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 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.