Don't Ignore The Insider Selling In Eagle Bancorp Montana

We'd be surprised if Eagle Bancorp Montana, Inc. (NASDAQ:EBMT) shareholders haven't noticed that the Independent Director, Kenneth Walsh, recently sold US$177k worth of stock at US$17.75 per share. However, the silver lining is that the sale only reduced their total holding by 7.9%, so we're hesitant to read anything much into it, on its own.

We've discovered 1 warning sign about Eagle Bancorp Montana. View them for free.

The Last 12 Months Of Insider Transactions At Eagle Bancorp Montana

In fact, the recent sale by Kenneth Walsh was the biggest sale of Eagle Bancorp Montana shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$17.49. 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 total, Eagle Bancorp Montana insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Eagle Bancorp Montana

I will like Eagle Bancorp Montana better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Eagle Bancorp Montana 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. From our data, it seems that Eagle Bancorp Montana insiders own 6.2% of the company, worth about US$8.6m. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Eagle Bancorp Montana Insiders?

An insider sold Eagle Bancorp Montana shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But since Eagle Bancorp Montana is profitable and growing, we're not too worried by this. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we'd only buy after very careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Eagle Bancorp Montana has 1 warning sign and it would be unwise to ignore this.

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.