Even if it’s not a huge purchase, we think it was good to see that Steven Hallgrimson, the Independent Director of Heritage Commerce Corp (NASDAQ:HTBK) recently shelled out US$94k to buy stock, at US$11.80 per share. That might not be a big purchase but it only increased their holding by 6.5%, and could be interpreted as a good sign.
Heritage Commerce Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Independent Director, Robert Moles, sold US$669k worth of shares at a price of US$13.54 per share. That means that an insider was selling shares at around the current price of US$11.60. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn’t a major concern, though it’s hardly a good sign.
In the last twelve months insiders purchased 49.03k shares for US$592k. But they sold 95975 for US$1.3m. All up, insiders sold more shares in Heritage Commerce than they bought, over the last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Does Heritage Commerce Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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. Heritage Commerce insiders own about US$26m worth of shares. That equates to 3.7% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Heritage Commerce Insiders?
It is good to see recent purchasing. On the other hand the transaction history, over the last year, isn’t so positive. The more recent transactions are a positive, but Heritage Commerce insiders haven’t shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. So they seem pretty well aligned, overall. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Heritage Commerce.
But note: Heritage Commerce 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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