Northwest Bancshares Insiders Placed Bullish Bets Worth US$600k
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Northwest Bancshares, Inc.'s (NASDAQ:NWBI) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Northwest Bancshares
Northwest Bancshares Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Timothy Hunter bought US$160k worth of shares at a price of US$10.67 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$10.05). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 53.96k shares for US$600k. On the other hand they divested 5.22k shares, for US$75k. In the last twelve months there was more buying than selling by Northwest Bancshares insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Insiders At Northwest Bancshares Have Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at Northwest Bancshares. In fact, three insiders bought US$177k worth of shares. But insider Carey Barnum sold shares worth US$1.0k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Does Northwest Bancshares Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.0% of Northwest Bancshares shares, worth about US$13m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Northwest Bancshares Tell Us?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Northwest Bancshares shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Northwest Bancshares. Our analysis shows 2 warning signs for Northwest Bancshares (1 can't be ignored!) and we strongly recommend you look at them before investing.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.
