Potential Prosperity Bancshares, Inc. (NYSE:PB) shareholders may wish to note that the President, Kevin Hanigan, recently bought US$208k worth of stock, paying US$69.24 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.9%.
Prosperity Bancshares Insider Transactions Over The Last Year
Chairman of the Board H. Timanus made the biggest insider purchase in the last 12 months. That single transaction was for US$644k worth of shares at a price of US$64.75 each. So it's clear an insider wanted to buy, at around the current price, which is US$70.66. 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. 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 Prosperity Bancshares share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 23000 shares for US$1.4m. But they sold 9416 for US$625k. In total, Prosperity Bancshares insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Prosperity 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 Prosperity Bancshares
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. Prosperity Bancshares insiders own about US$265m worth of shares (which is 4.0% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Prosperity Bancshares Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Prosperity Bancshares. Looks promising! Of course, the future is what matters most. So if you are interested in Prosperity Bancshares, you should check out this free report on analyst forecasts for the company.
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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