Pleasing Signs As A Number Of Insiders Buy West Bancorporation Stock
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in West Bancorporation, Inc.'s (NASDAQ:WTBA) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for West Bancorporation
The Last 12 Months Of Insider Transactions At West Bancorporation
The Independent Vice Chairman of the Board George Milligan made the biggest insider purchase in the last 12 months. That single transaction was for US$105k worth of shares at a price of US$20.99 each. That means that an insider was happy to buy shares at above the current price of US$16.06. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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.
While West Bancorporation insiders bought shares during the last year, they didn't sell. They paid about US$18.14 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and 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!
West Bancorporation is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At West Bancorporation Have Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at West Bancorporation. CEO, President & Director David Nelson shelled out US$34k for shares in that time. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
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. We usually like to see fairly high levels of insider ownership. It appears that West Bancorporation insiders own 4.5% of the company, worth about US$12m. 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 Do The West Bancorporation Insider Transactions Indicate?
We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think West Bancorporation insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that West Bancorporation has 1 warning sign and it would be unwise to ignore this.
Of course West Bancorporation 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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
