Investors who take an interest in Guaranty Federal Bancshares, Inc. (NASDAQ:GFED) should definitely note that the Independent Director, John Griesemer, recently paid US$23.89 per share to buy US$131k worth of the stock. Although the purchase only increased their holding by 4.6%, it is still a solid purchase in our view.
Guaranty Federal Bancshares Insider Transactions Over The Last Year
In fact, the recent purchase by John Griesemer was the biggest purchase of Guaranty Federal Bancshares shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$23.50 (the recent price), an insider wanted to purchase shares. 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.
In the last twelve months Guaranty Federal Bancshares insiders were buying shares, but not selling. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Guaranty Federal Bancshares
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Guaranty Federal Bancshares insiders own 9.7% of the company, worth about US$10m. 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 Do The Guaranty Federal Bancshares Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Guaranty Federal Bancshares we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in Guaranty Federal Bancshares, you should check out this free report on analyst forecasts for the company.
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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