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Did Esquire Financial Holdings, Inc. (NASDAQ:ESQ) Insiders Buy Up More Shares?

Simply Wall St

We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Esquire Financial Holdings, Inc. (NASDAQ:ESQ).

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'

View our latest analysis for Esquire Financial Holdings

The Last 12 Months Of Insider Transactions At Esquire Financial Holdings

In the last twelve months, the biggest single sale by an insider was when the Director, Richard Powers, sold US$74k worth of shares at a price of US$25.14 per share. That means that an insider was selling shares at around the current price of US$22.92. While we don't usually like to see insider selling, it's more concerning if the sales take place 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. Richard Powers was the only individual insider to sell over the last year.

Over the last year, we can see that insiders have bought 4500 shares worth US$112k. On the other hand they divested 4500 shares, for US$112k. Overall, Esquire Financial Holdings insiders were net buyers last year. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqCM:ESQ Recent Insider Trading, August 13th 2019

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.

Esquire Financial Holdings Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Esquire Financial Holdings. Overall, two insiders shelled out US$76k for shares in the company -- and none sold. That shows some optimism about the company's future.

Does Esquire Financial Holdings Boast High Insider Ownership?

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 13% of Esquire Financial Holdings shares, worth about US$22m. 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 Esquire Financial Holdings Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Esquire Financial Holdings shares, given these transactions (along with notable insider ownership of the company). Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Esquire Financial Holdings.

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.

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.

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. Thank you for reading.