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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Eagle Bancorp, Inc.'s (NASDAQ:EGBN) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Eagle Bancorp
Eagle Bancorp Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chair, President & CEO Susan Riel bought US$99k worth of shares at a price of US$18.73 per share. So it's clear an insider wanted to buy, at around the current price, which is US$20.39. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Eagle Bancorp insiders decided to buy shares at close to current prices.
Happily, we note that in the last year insiders paid US$252k for 13.74k shares. On the other hand they divested 3.00k shares, for US$77k. Overall, Eagle Bancorp insiders were net buyers during the last year. 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!
Eagle Bancorp is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Eagle Bancorp Have Sold Stock Recently
There was substantially more insider selling, than buying, of Eagle Bancorp shares over the last three months. In total, Executive VP & Chief Legal Officer Paul Saltzman sold US$77k worth of shares in that time. On the flip side, Senior Executive VP & CFO Eric Newell spent US$25k on purchasing shares. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the company has been fully valued in recent months.
Insider Ownership Of Eagle Bancorp
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Eagle Bancorp insiders own 3.7% of the company, worth about US$23m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.