In This Article:
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Hawthorn Bancshares, Inc.'s (NASDAQ:HWBK) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Hawthorn Bancshares
The Last 12 Months Of Insider Transactions At Hawthorn Bancshares
The Independent Non-Executive Director Douglas Eden made the biggest insider purchase in the last 12 months. That single transaction was for US$294k worth of shares at a price of US$19.63 each. We do like to see buying, but this purchase was made at well below the current price of US$32.75. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Hawthorn Bancshares insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and 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!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Are Hawthorn Bancshares Insiders Buying Or Selling?
We've only seen a tiny insider purchase valued at US$506, in the last three months. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.
Insider Ownership Of Hawthorn Bancshares
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Hawthorn Bancshares insiders own 17% of the company, worth about US$36m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Hawthorn Bancshares Insiders?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Hawthorn Bancshares insiders are doubting the company, and they do own shares. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Hawthorn Bancshares has 2 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.