It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Independent Bank Corporation's (NASDAQ:IBCP) case, it's fantastic news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Independent Bank

Independent Bank Insider Transactions Over The Last Year

The Independent Director Dennis Archer made the biggest insider purchase in the last 12 months. That single transaction was for US$116k worth of shares at a price of US$24.14 each. So it's clear an insider wanted to buy, at around the current price, which is US$24.21. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Independent Bank insiders decided to buy shares at close to current prices.

In the last twelve months insiders purchased 10.69k shares for US$193k. But insiders sold 2.00k shares worth US$41k. Overall, Independent Bank insiders were net buyers during the last year. The average buy price was around US$18.07. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Independent Bank insiders own 2.4% of the company, worth about US$12m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Independent Bank Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Independent Bank shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Independent Bank insiders are doubting the company, and they do own shares. Of course, the future is what matters most. So if you are interested in Independent Bank, you should check out this free report on analyst forecasts for the company.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.