Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Primis Financial Corp. (NASDAQ:FRST), that sends out a positive message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Primis Financial

The Last 12 Months Of Insider Transactions At Primis Financial

Over the last year, we can see that the biggest insider sale was by the Independent Director, Charles Kabbash, for US$136k worth of shares, at about US$12.19 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$10.99. So it may not tell us anything about how insiders feel about the current share price. Charles Kabbash was the only individual insider to sell shares in the last twelve months.

In the last twelve months insiders purchased 40.80k shares for US$487k. On the other hand they divested 11.18k shares, for US$136k. Overall, Primis Financial insiders were net buyers during the last year. 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!

Primis Financial is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Primis Financial Have Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at Primis Financial. Insiders spent US$284k on shares. But Independent Director Charles Kabbash sold shares worth US$136k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Does Primis Financial Boast High 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. Primis Financial insiders own about US$11m worth of shares. That equates to 3.9% of the company. 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 Does This Data Suggest About Primis Financial Insiders?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Primis Financial shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Primis Financial. Case in point: We've spotted 1 warning sign for Primis Financial you should be aware of.

Of course Primis Financial 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.

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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.