Don't Ignore The Insider Selling In Burke & Herbert Financial Services

We'd be surprised if Burke & Herbert Financial Services Corp. (NASDAQ:BHRB) shareholders haven't noticed that the Director, James Burke, recently sold US$128k worth of stock at US$64.22 per share. On the bright side, that sale was only 0.7% of their holding, so we doubt it's very meaningful, on its own.

View our latest analysis for Burke & Herbert Financial Services

Burke & Herbert Financial Services Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Gary Hinkle for US$340k worth of shares, at about US$68.09 per share. So it's clear an insider wanted to buy, at around the current price, which is US$71.04. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. Happily, the Burke & Herbert Financial Services insiders decided to buy shares at close to current prices.

In the last twelve months insiders purchased 56.22k shares for US$3.0m. On the other hand they divested 4.00k shares, for US$262k. In total, Burke & Herbert Financial Services insiders bought more than they sold over the last year. They paid about US$54.01 on average. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and 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 always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Burke & Herbert Financial Services Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Burke & Herbert Financial Services insiders own 12% of the company, currently worth about US$121m 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 Burke & Herbert Financial Services Tell Us?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Burke & Herbert Financial Services. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Burke & Herbert Financial Services. Case in point: We've spotted 3 warning signs for Burke & Herbert Financial Services you should be aware of, and 1 of these is significant.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.