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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 Hanover Bancorp, Inc.'s (NASDAQ:HNVR) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Hanover Bancorp
The Last 12 Months Of Insider Transactions At Hanover Bancorp
In fact, the recent sale by Michael Katz was the biggest sale of Hanover Bancorp shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$25.35. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Happily, we note that in the last year insiders paid US$190k for 10.99k shares. But insiders sold 7.50k shares worth US$191k. Over the last year we saw more insider selling of Hanover Bancorp shares, than buying. 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Hanover Bancorp Insiders Are Selling The Stock
We've seen more insider selling than insider buying at Hanover Bancorp recently. In that time, insiders dumped US$191k worth of shares. On the flip side, Independent Director Elena Sisti spent US$5.0k on purchasing shares. Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.
Insider Ownership Of Hanover Bancorp
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 25% of Hanover Bancorp shares, worth about US$45m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Hanover Bancorp Insiders?
The stark truth for Hanover Bancorp is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Hanover Bancorp has 1 warning sign and it would be unwise to ignore it.