Even though it is not a big purchase, we think it is good to see that Barry Sloane, the president of More information. (NASDAQ:NEWT) recently spent $81,000 to buy shares at a price of $12.13 per share. Still, the shareholding only increased by a tiny percentage, and in absolute value terms, it wasn’t a huge purchase either.

Check out our latest analysis for NewtekOne

NewtekOne insider transactions in the last year

Notably, this recent purchase by President Barry Sloane was not the only time they bought NewtekOne shares this year. They had previously made an even larger purchase, buying $142,000 worth of shares at a price of $14.18 per share. That means an insider was happy to buy shares above the current price of $12.80. While their opinion may have changed since the purchase, it at least suggests they had confidence in the company’s future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they recognized value even at higher prices.

Over the last twelve months, insiders bought 61,040 shares for $853,000. On the other hand, they sold 5.00 shares for $69.10. Overall, NewtekOne insiders were net buyers over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the chart below, you can see the exact details of each insider transaction!

NewtekOne is not the only stock that insiders are buying. For those who like to find Small-cap companies at attractive valuations, The free A list of growing companies with recent insider purchases might be just the thing.

Insider ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Typically, the higher the insider ownership, the more likely it is that insiders are motivated to build the company for the long term. It appears that NewtekOne insiders own 6.0% of the company, worth about US$20 million. While this is a strong but not outstanding level of insider ownership, it is enough to indicate some alignment between management and smaller shareholders.

So what does this data say about NewtekOne insiders?

Recent insider purchases are certainly positive. And we are also encouraged by longer-term insider transactions. Combined with notable insider ownership, these factors suggest that NewtekOne insiders are well aligned and believe the share price is too low. While it’s good to know about insider ownership and transactions, we make sure to also consider the risks associated with a stock before making an investment decision. To support this, we found the following: 3 warning signs (1 we don’t like so much!) that you should know before buying NewtekOne stock.

But please note: NewtekOne may not be the best stock to buySo take a look at the free List of interesting companies with high return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulator. Currently, we only consider open market transactions and private disposals of direct holdings, but not derivative transactions or indirect holdings.

Do you have feedback on this article? Are you concerned about the content? Contact us directly from us. Alternatively, send an email to editorial-team (at) simplywallst.com.

This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.