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Even if it's not a huge purchase, we think it was good to see that James Bunch, the Independent Director of Guaranty Bancshares, Inc. (NASDAQ:GNTY) recently shelled out US$72k to buy stock, at US$24.74 per share. Although the purchase is not a big one, increasing shareholding by only 3.5%, it can be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At Guaranty Bancshares
In the last twelve months, the biggest single purchase by an insider was when Independent Director Richard Baker bought US$385k worth of shares at a price of US$27.00 per share. That means that an insider was happy to buy shares at above the current price of US$23.05. 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. 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.
Over the last year, we can see that insiders have bought 50.06k shares worth US$1.3m. But they sold 19027 shares for US$620k. In the last twelve months there was more buying than selling by Guaranty Bancshares insiders. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Insider Ownership of Guaranty Bancshares
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Guaranty Bancshares insiders own about US$63m worth of shares. That equates to 25% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Guaranty Bancshares Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Guaranty Bancshares we think they are probably pretty confident of a bright future. 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. When we did our research, we found 3 warning signs for Guaranty Bancshares (1 doesn't sit too well with us!) that we believe deserve your full attention.
But note: 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.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned.
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