We'd be surprised if Northrim BanCorp, Inc. (NASDAQ:NRIM) shareholders haven't noticed that the Executive VP & Chief Banking Officer, Jason Criqui, recently sold US$357k worth of stock at US$26.44 per share. That sale was 47% of their holding, so it does make us raise an eyebrow.

The Last 12 Months Of Insider Transactions At Northrim BanCorp

Notably, that recent sale by Jason Criqui is the biggest insider sale of Northrim BanCorp shares that we've seen in the last year. That means that even when the share price was below the current price of US$27.08, 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 47% of Jason Criqui's holding.

In the last twelve months insiders purchased 5.93k shares for US$143k. But insiders sold 17.49k shares worth US$463k. Over the last year we saw more insider selling of Northrim BanCorp shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Northrim BanCorp better if I see some big insider buys.

Does Northrim BanCorp Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 3.0% of Northrim BanCorp shares, worth about US$18m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Northrim BanCorp Insiders?

Insiders haven't bought Northrim BanCorp stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Northrim BanCorp makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing.

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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.