In the last year, multiple insiders have substantially increased their holdings of First Northwest Bancorp (NASDAQ:FNWB) stock, indicating that insiders' optimism about the company's prospects has increased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for First Northwest Bancorp

The Last 12 Months Of Insider Transactions At First Northwest Bancorp

In the last twelve months, the biggest single purchase by an insider was when Independent Director Dana Behar bought US$840k worth of shares at a price of US$10.50 per share. That means that an insider was happy to buy shares at above the current price of US$10.13. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Over the last year, we can see that insiders have bought 99.42k shares worth US$1.1m. On the other hand they divested 3.10k shares, for US$49k. In the last twelve months there was more buying than selling by First Northwest Bancorp insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

First Northwest Bancorp Insiders Bought Stock Recently

There was some insider buying at First Northwest Bancorp over the last quarter. Insiders purchased US$42k worth of shares in that period. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Does First Northwest Bancorp Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that First Northwest Bancorp insiders own about US$5.8m worth of shares (which is 6.6% of the company). We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About First Northwest Bancorp Insiders?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think First Northwest Bancorp insiders are doubting the company. 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 2 warning signs for First Northwest 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.