We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Equity Bancshares, Inc. (NASDAQ:EQBK).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
Equity Bancshares Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Director Harvey Sorensen bought US$51k worth of shares at a price of US$25.66 per share. That means that an insider was happy to buy shares at around the current price of US$28.24. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Equity Bancshares share holders is that insiders were buying at near the current price.
In the last twelve months insiders paid US$287k for 10068 shares purchased. Equity Bancshares insiders may have bought shares in the last year, but they didn't sell any. They paid about US$28.47 on average. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Equity 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Equity Bancshares insiders own about US$39m worth of shares. That equates to 9.0% 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 Does This Data Suggest About Equity Bancshares Insiders?
It doesn't really mean much that no insider has traded Equity Bancshares shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Equity Bancshares and their transactions don't cause us concern. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Equity Bancshares.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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. Thank you for reading.