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Did Bridgewater Bancshares, Inc. (NASDAQ:BWB) Insiders Buy Up More Shares?

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 shareholders might well want to know whether insiders have been buying or selling shares in Bridgewater Bancshares, Inc. (NASDAQ:BWB).

Do Insider Transactions Matter?

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 don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.

Check out our latest analysis for Bridgewater Bancshares

Bridgewater Bancshares Insider Transactions Over The Last Year

Founder Gerald Baack made the biggest insider purchase in the last 12 months. That single transaction was for US$440k worth of shares at a price of US$10.99 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$8.93). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 52.08k shares worth US$562k. But they sold 22500 shares for US$290k. Overall, Bridgewater Bancshares insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqCM:BWB Recent Insider Trading April 22nd 2020
NasdaqCM:BWB Recent Insider Trading April 22nd 2020

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Bridgewater Bancshares Insiders Bought Stock Recently

At Bridgewater Bancshares,over the last quarter, we have observed quite a lot more insider buying than insider selling. Insiders spent US$551k on shares. On the other hand, Independent Director James Johnson netted US$101k by selling. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Bridgewater Bancshares insiders own about US$43m worth of shares. That equates to 17% 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.

So What Does This Data Suggest About Bridgewater Bancshares Insiders?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Bridgewater Bancshares shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, Bridgewater Bancshares has 2 warning signs (and 1 which can't be ignored) we think you should know about.

Of course Bridgewater Bancshares may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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