Bullish insiders at German American Bancorp, Inc. (NASDAQ:GABC) loaded up on US$694k of stock earlier this year
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of German American Bancorp, Inc. (NASDAQ:GABC), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for German American Bancorp
The Last 12 Months Of Insider Transactions At German American Bancorp
The Lead Independent Director Thomas Seger made the biggest insider purchase in the last 12 months. That single transaction was for US$295k worth of shares at a price of US$36.93 each. That means that an insider was happy to buy shares at above the current price of US$35.82. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
German American Bancorp insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
German American Bancorp 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.
German American Bancorp Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at German American Bancorp. Not only was there no selling that we can see, but they collectively bought US$274k worth of shares. This makes one think the business has some good points.
Insider Ownership Of German American 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. German American Bancorp insiders own about US$62m worth of shares. That equates to 5.9% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At German American Bancorp Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of German American Bancorp we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing German American Bancorp. While conducting our analysis, we found that German American Bancorp has 1 warning sign and it would be unwise to ignore it.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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