Even if it’s not a huge purchase, we think it was good to see that John Manos, the President of Commercial Real Estate Division – BankFinancial FSB of BankFinancial Corporation (NASDAQ:BFIN) recently shelled out US$53k to buy stock, at US$8.02 per share. While we’re hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 12%.
BankFinancial Insider Transactions Over The Last Year
Notably, that recent purchase by John Manos is the biggest insider purchase of BankFinancial shares that we’ve seen in the last year. That means that even when the share price was higher than US$7.89 (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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 7.50k shares worth US$61k. But insiders sold 3000 shares worth US$37k. Overall, BankFinancial insiders were net buyers during the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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 BankFinancial 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. We usually like to see fairly high levels of insider ownership. Insiders own 5.0% of BankFinancial shares, worth about US$5.9m, according to our data. Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!
So What Does This Data Suggest About BankFinancial Insiders?
It’s certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. While the overall levels of insider ownership are below what we’d like to see, the history of transactions imply that BankFinancial insiders are reasonably well aligned, and optimistic for the future. While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 3 warning signs for BankFinancial (1 is concerning!) that we believe deserve your full attention.
But note: BankFinancial 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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