Lead Independent Director of HomeStreet Mark Patterson Buys 30% More Shares \
Potential HomeStreet, Inc. (NASDAQ:HMST) shareholders may wish to note that the Lead Independent Director, Mark Patterson, recently bought US$457k worth of stock, paying US$6.52 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 30%.
View our latest analysis for HomeStreet
The Last 12 Months Of Insider Transactions At HomeStreet
Notably, that recent purchase by Lead Independent Director Mark Patterson was not the only time they bought HomeStreet shares this year. They previously made an even bigger purchase of US$1.1m worth of shares at a price of US$39.46 per share. That means that an insider was happy to buy shares at above the current price of US$6.34. 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. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months HomeStreet insiders were buying shares, but not selling. The average buy price was around US$22.73. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and 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!
HomeStreet is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that HomeStreet insiders own 5.5% of the company, worth about US$6.5m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The HomeStreet Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that HomeStreet insiders are expecting 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. At Simply Wall St, we've found that HomeStreet has 4 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.
Of course HomeStreet may not be the best stock to buy. So you may wish to see this free collection of high quality 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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