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Insider Buying: The Heritage Commerce Corp (NASDAQ:HTBK) Independent Director Just Bought 3.0% More Shares

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Simply Wall St
·3 min read
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Whilst it may not be a huge deal, we thought it was good to see that the Heritage Commerce Corp (NASDAQ:HTBK) Independent Director, Jason Omega DiNapoli, recently bought US$89k worth of stock, for US$8.94 per share. Although the purchase is not a big one, increasing their shareholding by only 3.0%, it can be interpreted as a good sign.

View our latest analysis for Heritage Commerce

Heritage Commerce Insider Transactions Over The Last Year

The Director, Walter Kaczmarek, made the biggest insider sale in the last 12 months. That single transaction was for US$361k worth of shares at a price of US$11.76 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$9.14). So it may not shed much light on insider confidence at current levels.

In the last twelve months insiders purchased 58.92k shares for US$616k. But they sold 43.42k shares for US$459k. In total, Heritage Commerce insiders bought more than they sold over the last year. You can see the insider transactions (by companies and 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!

insider-trading-volume
insider-trading-volume

Heritage Commerce is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Heritage Commerce 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Heritage Commerce insiders own 4.0% of the company, worth about US$22m. 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 Heritage Commerce Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Heritage Commerce 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. While conducting our analysis, we found that Heritage Commerce has 4 warning signs and it would be unwise to ignore them.

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.

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.

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