Potential West Bancorporation, Inc. (NASDAQ:WTBA) shareholders may wish to note that the Director, George Milligan, recently bought US$101k worth of stock, paying US$20.22 for each share. That’s a very solid buy in our book, and increased their holding by a noteworthy 19.9%.
The Last 12 Months Of Insider Transactions At West Bancorporation
Director Sean McMurray made the biggest insider purchase in the last 12 months. That single transaction was for US$173k worth of shares at a price of US$20.66 each. So it’s clear an insider wanted to buy, at around the current price, which is US$20.98. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it’s less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for West Bancorporation share holders is that insiders were buying at near the current price.
Happily, we note that in the last year insiders bought 23097 shares for a total of US$483k. In the last twelve months West Bancorporation insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by 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!
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 3.3% of West Bancorporation shares, worth about US$11m. 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 West Bancorporation Insider Transactions Indicate?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest West Bancorporation insiders are well aligned, and that they may think the share price is too low. Of course, the future is what matters most. So if you are interested in West Bancorporation, you should check out this free report on analyst forecasts for the company.
But note: West Bancorporation may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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