Those following along with Northpointe Bancshares, Inc. (NYSE:NPB) will no doubt be intrigued by the recent purchase of shares by Charles Williams, Founder of the company, who spent a stonking US$636k on stock at an average price of US$16.89. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 1.3%.

Northpointe Bancshares Insider Transactions Over The Last Year

The Independent Director, Robert De Vlieger, made the biggest insider sale in the last 12 months. That single transaction was for US$1.4m worth of shares at a price of US$14.50 each. That means that an insider was selling shares at slightly below the current price (US$17.59). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 11% of Robert De Vlieger's holding.

Happily, we note that in the last year insiders paid US$894k for 55.40k shares. 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 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.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Northpointe Bancshares insiders own 35% of the company, worth about US$210m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Northpointe Bancshares Insider Transactions Indicate?

The recent insider purchase is heartening. However, the longer term transactions are not so encouraging. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. Of course, the future is what matters most.

Of course Northpointe Bancshares 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.