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Investors who take an interest in First Guaranty Bancshares, Inc. (NASDAQ:FGBI) should definitely note that the Director, W. McAnally, recently paid US$8.47 per share to buy US$208k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 16%.
The Last 12 Months Of Insider Transactions At First Guaranty Bancshares
In fact, the recent purchase by W. McAnally was the biggest purchase of First Guaranty Bancshares shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$7.70). 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. In our view, the price an insider pays for shares is very important. 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.
In the last twelve months First Guaranty Bancshares insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for First Guaranty Bancshares
First Guaranty Bancshares is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. First Guaranty Bancshares insiders own 44% of the company, currently worth about US$42m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The First Guaranty Bancshares Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about First Guaranty Bancshares. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing First Guaranty Bancshares. For example - First Guaranty Bancshares has 1 warning sign we think you should be aware of.