Investors who take an interest in TowneBank (NASDAQ:TOWN) should definitely note that insider F. Wood recently paid US$28.01 per share to buy US$219k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 5.4%.
The Last 12 Months Of Insider Transactions At TowneBank
Over the last year, we can see that the biggest insider purchase was by Executive Chairman G. Aston for US$1.5m worth of shares, at about US$24.81 per share. That implies that an insider found the current price of US$27.46 per share to be enticing. 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. The good news for TowneBank share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 100473 shares worth US$2.6m. But insiders sold 43137 shares worth US$1.2m. In the last twelve months there was more buying than selling by TowneBank insiders. You can see the insider transactions (by 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!
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.
Does TowneBank 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. TowneBank insiders own 11% of the company, currently worth about US$222m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At TowneBank Tell Us?
Unfortunately, there has been more insider selling of TowneBank stock, than buying, in the last three months. On the other hand, the insider transactions over the last year are encouraging. On top of that, insiders own a significant portion of the company. So the recent selling doesn't worry us. 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 TowneBank 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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If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.