Pleasing Signs As A Number Of Insiders Buy HBT Financial Stock
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in HBT Financial, Inc.'s (NASDAQ:HBT) 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 HBT Financial
The Last 12 Months Of Insider Transactions At HBT Financial
Over the last year, we can see that the biggest insider purchase was by Independent Director Eric Burwell for US$89k worth of shares, at about US$17.83 per share. That means that an insider was happy to buy shares at around the current price of US$18.78. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months HBT Financial insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
HBT Financial is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At HBT Financial Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at HBT Financial. We can see that Independent Director Roger Baker paid US$176k for shares in the company. No-one sold. That shows some optimism about the company's future.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. HBT Financial insiders own 59% of the company, currently worth about US$354m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The HBT Financial Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest HBT Financial insiders are well aligned, and quite possibly think the share price is too low. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for HBT Financial you should be aware of.
Of course HBT Financial 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.
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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.
