Read This Before Selling Camden National Corporation (NASDAQ:CAC) Shares

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Camden National Corporation (NASDAQ:CAC), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for Camden National

Camden National Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Secretary & Independent Director Ann Bresnahan for US$261k worth of shares, at about US$26.06 per share. That means that an insider was happy to buy shares at around the current price of US$31.96. Of course they may have changed their mind. But this suggests they are optimistic. 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 Camden National insiders decided to buy shares at close to current prices.

Over the last year, we can see that insiders have bought 15.84k shares worth US$402k. On the other hand they divested 4.22k shares, for US$203k. In total, Camden National insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Camden National is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Camden National

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. Camden National insiders own about US$14m worth of shares. That equates to 2.8% of the company. 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 Camden National Insiders?

It doesn't really mean much that no insider has traded Camden National shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Camden National and we see no evidence to suggest they are worried about the future. 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. While conducting our analysis, we found that Camden National has 1 warning sign and it would be unwise to ignore it.

But note: Camden National may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.

This article by Simply Wall St is general in nature. 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.

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