Independent Director of Princeton Bancorp Picks Up 3.1% More Stock

Princeton Bancorp, Inc. (NASDAQ:BPRN) shareholders (or potential shareholders) will be happy to see that the Independent Director, Martin Tuchman, recently bought a whopping US$720k worth of stock, at a price of US$32.71. 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 3.1%.

See our latest analysis for Princeton Bancorp

Princeton Bancorp Insider Transactions Over The Last Year

In fact, the recent purchase by Martin Tuchman was the biggest purchase of Princeton Bancorp shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$31.75 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Martin Tuchman was the only individual insider to buy shares in the last twelve months.

Martin Tuchman bought a total of 59.76k shares over the year at an average price of US$31.89. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

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 24% of Princeton Bancorp shares, worth about US$53m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Princeton Bancorp Tell Us?

We can't make any useful conclusions about recent trading, since insider buying and selling has been balanced. However, our analysis of transactions over the last year is heartening. Insiders own shares in Princeton Bancorp and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Princeton Bancorp you should be aware of.

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.

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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.