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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Prosperity Bancshares, Inc. (NYSE:PB), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. 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.'
The Last 12 Months Of Insider Transactions At Prosperity Bancshares
Over the last year, we can see that the biggest insider purchase was by Vice Chairman H. Timanus for US$296k worth of shares, at about US$59.14 per share. That implies that an insider found the current price of US$72.10 per share to be enticing. 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. 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 Prosperity Bancshares share holders is that an insider was buying at near the current price. H. Timanus was the only individual insider to buy shares in the last twelve months.
In total, Prosperity Bancshares insiders sold more than they bought over the last year. 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Prosperity Bancshares Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Prosperity Bancshares insiders own 4.8% of the company, currently worth about US$244m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Prosperity Bancshares Tell Us?
The fact that there have been no Prosperity Bancshares insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Prosperity Bancshares, we can't say the same about the selling of shares. 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 Prosperity Bancshares may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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 firstname.lastname@example.org. 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.