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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Nicholas Financial, Inc. (NASDAQ:NICK).

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'

View our latest analysis for Nicholas Financial

Nicholas Financial Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by President Douglas Marohn for US$106k worth of shares, at about US$9.69 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$8.90). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders bought 30320 shares for a total of US$307k. While Nicholas Financial insiders bought shares last year, they didn't sell. You can see a visual depiction of insider transactions (by 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!

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

Nicholas Financial Insiders Bought Stock Recently

It's good to see that Nicholas Financial insiders have made notable investments in the company's shares. In total, insiders bought US$161k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.