Even if it’s not a huge purchase, we think it was good to see that John Ahn, the Independent Chairman of Hanmi Financial Corporation (NASDAQ:HAFC) recently shelled out US$70k to buy stock, at US$7.78 per share. That purchase might not be huge but it did increase their holding by 30%.
Hanmi Financial Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Chairman John Ahn was not the only time they bought Hanmi Financial shares this year. Earlier in the year, they paid US$16.98 per share in a US$119k purchase. That means that even when the share price was higher than US$8.79 (the recent price), an insider wanted to purchase shares. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. 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.
Hanmi Financial insiders may have bought shares in the last year, but they didn’t sell any. They paid about US$10.10 on average. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by individuals) over the last year. 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.
Insider Ownership of Hanmi Financial
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 2.1% of Hanmi Financial shares, worth about US$5.7m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Hanmi Financial Insiders?
It’s certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. While the overall levels of insider ownership are below what we’d like to see, the history of transactions imply that Hanmi Financial insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. For example – Hanmi Financial has 3 warning signs we think you should be aware of.
Of course Hanmi Financial 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. 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. Thank you for reading.