We note that the TowneBank (NASDAQ:TOWN) Senior EVP, William Littreal, recently sold US$51k worth of stock for US$27.00 per share. On the bright side, that’s just a small sale and only reduced their holding by 2.9%.
TowneBank Insider Transactions Over The Last Year
Executive Chairman G. Aston made the biggest insider purchase in the last 12 months. That single transaction was for US$1.5m worth of shares at a price of US$24.81 each. That implies that an insider found the current price of US$27.53 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. 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.
Happily, we note that in the last year insiders paid US$2.3m for 88.95k shares. But they sold 77812 for US$2.2m. Overall, TowneBank insiders were net buyers last year. 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!
TowneBank is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of TowneBank
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. TowneBank insiders own 11% of the company, currently worth about US$219m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At TowneBank Tell Us?
Insiders sold stock recently, but they haven’t been buying. In contrast, they appear keener if you look at the last twelve months. On top of that, insiders own a significant portion of the company. So we’re not too bothered by recent selling. 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.
But note: TowneBank 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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