Independent Director of Bankwell Financial Group Darryl Demos Buys 24% More Shares

Even if it's not a huge purchase, we think it was good to see that Darryl Demos, the Independent Director of Bankwell Financial Group, Inc. (NASDAQ:BWFG) recently shelled out US$75k to buy stock, at US$32.61 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 24%.

See our latest analysis for Bankwell Financial Group

Bankwell Financial Group Insider Transactions Over The Last Year

The Executive VP & Chief Credit Officer, Christine Chivily, made the biggest insider sale in the last 12 months. That single transaction was for US$150k worth of shares at a price of US$23.60 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$30.53. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 18% of Christine Chivily's holding.

Happily, we note that in the last year insiders paid US$468k for 16.62k shares. On the other hand they divested 15.79k shares, for US$402k. In total, Bankwell Financial Group insiders bought more than they sold over the last year. Their average price was about US$28.18. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Bankwell Financial Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Bankwell Financial Group

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 14% of Bankwell Financial Group shares, worth about US$34m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Bankwell Financial Group Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Bankwell Financial Group shares, given these transactions (along with notable insider ownership of the company). While it's good to be aware of 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. At Simply Wall St, we found 1 warning sign for Bankwell Financial Group that deserve your attention before buying any shares.

But note: Bankwell Financial Group 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 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.