We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 QCR Holdings, Inc. (NASDAQ:QCRH).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
The Last 12 Months Of Insider Transactions At QCR Holdings
Michael Peterson made the biggest insider purchase in the last 12 months. That single transaction was for US$670k worth of shares at a price of US$33.51 each. So it’s clear an insider wanted to buy, even at a higher price. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. It’s not at all bad to see insiders buy shares at or above current prices.
Happily, we note that in the last year insiders paid US$777k for 23.12k shares. But they sold 3.83k for US$171k. In the last twelve months there was more buying than selling by QCR Holdings insiders. The average buy price was around US$33.62. I’d consider this a positive as it suggests insiders see value at around the current price, which is US$33.47. 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!
QCR Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at QCR Holdings Have Bought Stock Recently
Over the last quarter, QCR Holdings insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$771k worth of shares. This could be interpreted as suggesting a positive outlook.
Does QCR Holdings Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that QCR Holdings insiders own 15% of the company, worth about US$81m. 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 QCR Holdings Insider Transactions Indicate?
It’s certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest QCR Holdings insiders are well aligned, and that they may think the share price is too low. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.