Viewing insider transactions for Heartland Financial USA, Inc.'s (NASDAQ:HTLF ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Heartland Financial USA
The Last 12 Months Of Insider Transactions At Heartland Financial USA
In the last twelve months, the biggest single purchase by an insider was when President Bruce Lee bought US$92k worth of shares at a price of US$45.90 per share. That means that an insider was happy to buy shares at above the current price of US$44.37. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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 when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Bruce Lee.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Heartland Financial USA is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Heartland Financial USA insiders own about US$188m worth of shares (which is 10.0% of the company). 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 Heartland Financial USA Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Heartland Financial USA insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Heartland Financial USA. In terms of investment risks, we've identified 1 warning sign with Heartland Financial USA and understanding it should be part of your investment process.