We recently published a list of 10 Top Insider Stock Buys And Sells In January. In this article, we are going to take a look at where Isabella Bank (OTC:ISBA) stands against other top insider stock buys and sells in January.
Ever heard of the “January effect?” In case you haven’t, a “January effect” is considered a phenomenon in the stock market where stock prices, most commonly of small-cap stocks, rise in the month of January. Analysts have noticed the pattern and provided various explanations for it.
Some attribute the January rise in price to tax-loss harvesting, which usually happens between October and December. The theory suggests that after investors have sold some of their stocks at the end of the year for tax purposes, investors search for new buying opportunities. Others believe that year-end bonuses lead to more investments which subsequently increases stock prices. Overall, whatever the reasons, January seems to be a favorable part of the year for the stock market.
This January, the broader market index went up 2.93%. But, what are some of the stocks that have seen the most insider trading activity this month? To find out, we used Insider Monkey’s insider trading stock screener and looked for stocks with a minimum of five insiders buying or selling in January.
Why should we be interested in insider trading activity? While both insider selling and buying can be driven by various motives, it is important to consider these moves within the broader context of the company’s fundamentals, industry trends, and overall market conditions. That’s why due diligence before any investment is of the utmost importance. However, insider trading activity in combination with other relevant determinants can offer valuable insights into a company’s capabilities, helping investors make more informed investment decisions.
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Isabella Bank Corporation (OTCMKTS:ISBA)
Number of insiders buying: 10
Market Cap: $184.14 million
Isabella Bank is the parent holding company of more than a century-old Isabella Bank. The Michigan-headquartered state-chartered community bank was founded in 1903. The Bank provides investment, trust, and estate planning services, as well as personal and commercial lending and deposit products.
In January, 10 insiders, including the President and CEO, CFO, and COO, bought a total of approximately $87,434.56 worth of Isabella Bank shares at an average price of $25.37 per share. Out of the total amount, the company’s CEO, E Jerome Schwind, acquired 16 shares at a price of $24.69, increasing his holdings to 28,482 at the time. Then in February, Schwind purchased more shares and is now holding around 30,560 Isabella Bank shares.
Currently, the stock is trading at $25.44, having lost 1.78% since the beginning of the year. Over the past 12 months, the company’s shares have gone up 24.10%.
Isabela Bank reported a net income of $13.9 million, or $1.86 per share on a diluted basis for the full year 2024. This compares to net income of $18.2 million and $2.40 per share on a diluted basis in 2023. The non-GAAP measure of 2024 core earnings was $15.0 million, or $2.01 per diluted share, compared to $18.0 million, or $2.37 per diluted share, in 2023.
As per data from TipRanks, one Wall Street analyst rates Isabella Bank stock as “Hold,” and has a price target of $28.00 on it, which is a 10.06% increase from the last price.
Overall, ISBA ranks 7th on our list of top insider stock buys and sells in January. While we acknowledge the potential of ISBA, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ISBA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
