Potential First Guaranty Bancshares, Inc. (NASDAQ:FGBI) shareholders may wish to note that the Independent Director, William Hood, recently bought US$120k worth of stock, paying US$12.00 for each share. Although the purchase only increased their holding by 4.3%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At First Guaranty Bancshares
Notably, that recent purchase by William Hood is the biggest insider purchase of First Guaranty Bancshares shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$12.47. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for First Guaranty Bancshares share holders is that insiders were buying at near the current price.
While First Guaranty Bancshares insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
First Guaranty Bancshares is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of First Guaranty Bancshares
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. First Guaranty Bancshares insiders own about US$37m worth of shares. That equates to 31% of the company. 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 First Guaranty Bancshares Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of First Guaranty Bancshares we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing First Guaranty Bancshares. In terms of investment risks, we've identified 1 warning sign with First Guaranty Bancshares and understanding this should be part of your investment process.
But note: First Guaranty Bancshares 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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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. Thank you for reading.