Potential HomeStreet, Inc. (NASDAQ:HMST) shareholders may wish to note that the Independent Director, Mark Patterson, recently bought US$229k worth of stock, paying US$22.89 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 9.7%.
HomeStreet Insider Transactions Over The Last Year
In fact, the recent purchase by Mark Patterson was the biggest purchase of HomeStreet shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$23.92 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for HomeStreet share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 40.68k shares for US$992k. But insiders sold 3968.57 shares worth US$121k. In the last twelve months there was more buying than selling by HomeStreet insiders. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
Does HomeStreet Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that HomeStreet insiders own 3.4% of the company, worth about US$19m. 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 Does This Data Suggest About HomeStreet Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of HomeStreet we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for HomeStreet that deserve your attention before buying any shares.
But note: HomeStreet may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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