Insider Buying: The Washington Federal, Inc. (NASDAQ:WAFD) President Just Bought 1.5% More Shares
Even if it's not a huge purchase, we think it was good to see that Brent Beardall, the President of Washington Federal, Inc. (NASDAQ:WAFD) recently shelled out US$98k to buy stock, at US$23.42 per share. However, it only increased their shares held by 1.5%, and it wasn't a huge purchase by absolute value, either.
View our latest analysis for Washington Federal
The Last 12 Months Of Insider Transactions At Washington Federal
In the last twelve months, the biggest single purchase by an insider was when Independent Director Mark Tabbutt bought US$386k worth of shares at a price of US$25.72 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$23.16). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Washington Federal 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!
Washington Federal 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 Washington Federal
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Washington Federal insiders own about US$23m worth of shares. That equates to 1.3% 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.
So What Do The Washington Federal Insider Transactions Indicate?
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 Washington Federal shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, Washington Federal has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.
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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