U.S. markets closed
  • S&P Futures

    4,120.25
    +13.25 (+0.32%)
     
  • Dow Futures

    34,026.00
    +88.00 (+0.26%)
     
  • Nasdaq Futures

    13,154.00
    +53.75 (+0.41%)
     
  • Russell 2000 Futures

    2,177.20
    +8.60 (+0.40%)
     
  • Crude Oil

    63.87
    +0.05 (+0.08%)
     
  • Gold

    1,826.00
    +2.00 (+0.11%)
     
  • Silver

    27.17
    +0.12 (+0.43%)
     
  • EUR/USD

    1.2079
    -0.0006 (-0.05%)
     
  • 10-Yr Bond

    1.6680
    -0.0270 (-1.59%)
     
  • Vix

    23.13
    -4.46 (-16.17%)
     
  • GBP/USD

    1.4045
    -0.0006 (-0.04%)
     
  • USD/JPY

    109.6430
    +0.2090 (+0.19%)
     
  • BTC-USD

    50,096.28
    +272.95 (+0.55%)
     
  • CMC Crypto 200

    1,368.04
    -19.86 (-1.43%)
     
  • FTSE 100

    6,963.33
    -41.30 (-0.59%)
     
  • Nikkei 225

    27,799.46
    +351.45 (+1.28%)
     

Should You Take Comfort From Insider Transactions At Bridgewater Bancshares, Inc. (NASDAQ:BWB)?

  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Bridgewater Bancshares, Inc. (NASDAQ:BWB), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

See our latest analysis for Bridgewater Bancshares

The Last 12 Months Of Insider Transactions At Bridgewater Bancshares

Over the last year, we can see that the biggest insider purchase was by Independent Director David Juran for US$515k worth of shares, at about US$9.57 per share. We do like to see buying, but this purchase was made at well below the current price of US$14.91. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months Bridgewater Bancshares insiders were buying shares, but not selling. 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!

insider-trading-volume
insider-trading-volume

Bridgewater Bancshares 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 of Bridgewater Bancshares

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Bridgewater Bancshares insiders own 18% of the company, worth about US$76m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Bridgewater Bancshares Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Bridgewater Bancshares insiders are doubting the company, and they do own shares. Of course, the future is what matters most. So if you are interested in Bridgewater Bancshares, you should check out this free report on analyst forecasts for the company.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.