On October 30, 2023, Colin Read, a director at Arrow Financial Corp (AROW, Financial), made a significant insider purchase of 15,000 shares of the company's stock. This move is noteworthy as insider buying can often be a positive signal about a company's future prospects.
Colin Read is a seasoned executive with a wealth of experience in the financial sector. His role as a director at Arrow Financial Corp involves providing strategic guidance and oversight to the company's operations. His decision to increase his stake in the company is a strong vote of confidence in its future.
Arrow Financial Corp is a multi-bank holding company based in Glens Falls, New York. The company provides a broad range of banking and insurance services to customers throughout northeastern New York. With a market cap of $368.610 million, Arrow Financial Corp is a significant player in the regional banking sector.
Insider buying refers to when a company's executives, directors, or other insiders purchase shares of their own company's stock. This is often seen as a positive sign as it indicates that the insiders believe in the company's future and are willing to invest their own money in it. Conversely, insider selling is when insiders sell their shares, which can sometimes be seen as a negative sign.
Over the past year, Colin Read has purchased a total of 15,000 shares and sold a total of 6,900 shares. This recent purchase represents a significant increase in his holdings and could be a sign of his confidence in the company's future.
The insider transaction history for Arrow Financial Corp shows a total of 6 insider buys and 14 insider sells over the past year. Despite the higher number of sells, the insider's recent purchase could be a positive sign for the company.
On the day of the insider's recent buy, shares of Arrow Financial Corp were trading at $21 apiece. This gives the stock a price-earnings ratio of 10.68, which is higher than the industry median of 8.07 but lower than the company’s historical median price-earnings ratio.
With a price of $21 and a GuruFocus Value of $33.01, Arrow Financial Corp has a price-to-GF-Value ratio of 0.64. This indicates that the stock is significantly undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the insider's recent purchase of Arrow Financial Corp shares, coupled with the stock's undervalued status according to its GF Value, could be a positive sign for potential investors. However, as always, it is crucial to conduct thorough research and consider various factors before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
