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Whilst it may not be a huge deal, we thought it was good to see that the Howard Bancorp, Inc. (NASDAQ:HBMD) Lead Independent Director, Robert Smith, recently bought US$51k worth of stock, for US$10.30 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 11%.
Howard Bancorp Insider Transactions Over The Last Year
In fact, the recent purchase by Robert Smith was the biggest purchase of Howard Bancorp shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of US$10.11. 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid US$212k for 19.31k shares. But they sold 2.50k shares for US$41k. Overall, Howard Bancorp insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Insider Ownership of Howard Bancorp
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. Howard Bancorp insiders own about US$10m worth of shares. That equates to 5.5% of the company. 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 Howard Bancorp 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. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Howard Bancorp shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in Howard Bancorp, you should check out this free report on analyst forecasts for the company.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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, but not derivative transactions.
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. 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.
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