Several Insiders Invested In Shore Bancshares Flagging Positive News
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Shore Bancshares, Inc. (NASDAQ:SHBI), it sends a favourable message to the company's 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.
View our latest analysis for Shore Bancshares
The Last 12 Months Of Insider Transactions At Shore Bancshares
In the last twelve months, the biggest single purchase by an insider was when Independent Director Dawn Willey bought US$71k worth of shares at a price of US$17.84 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$12.40). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.
Shore Bancshares insiders may have bought shares in the last year, but they didn't sell any. They paid about US$15.38 on average. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Shore Bancshares is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Shore Bancshares Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Shore Bancshares. Not only was there no selling that we can see, but they collectively bought US$87k worth of shares. That shows some optimism about the company's future.
Does Shore Bancshares Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Shore Bancshares insiders own 8.9% of the company, worth about US$36m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Shore 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 Shore 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 Shore Bancshares. For example, Shore Bancshares has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.
Of course Shore Bancshares 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, but not derivative transactions.
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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.
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