Whilst it may not be a huge deal, we thought it was good to see that the Bridgewater Bancshares, Inc. (NASDAQ:BWB) Chief Deposit Officer, Lisa Salazar, recently bought US$82k worth of stock, for US$11.84 per share. While that isn't the hugest buy, it actually boosted their shareholding by 173%, which is good to see.
Bridgewater Bancshares Insider Transactions Over The Last Year
The Independent Director David Juran made the biggest insider purchase in the last 12 months. That single transaction was for US$515k worth of shares at a price of US$9.57 each. So it's clear an insider wanted to buy, at around the current price, which is US$11.58. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Bridgewater Bancshares share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 187.29k shares for US$1.9m. On the other hand they divested 7.50k shares, for US$101k. Overall, Bridgewater Bancshares insiders were net buyers during the last year. 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. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Bridgewater Bancshares
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Bridgewater Bancshares insiders own about US$58m worth of shares. That equates to 18% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Bridgewater Bancshares Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Bridgewater Bancshares insiders are well aligned, and that they may think the share price is too low. 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. For example - Bridgewater Bancshares has 1 warning sign we think you should be aware of.
But note: Bridgewater Bancshares 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.
If you decide to trade Bridgewater Bancshares, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account.
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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email email@example.com.