Have Eagle Bancorp Montana, Inc. (NASDAQ:EBMT) Insiders Been Selling Their Stock?

We note that the Eagle Bancorp Montana, Inc. (NASDAQ:EBMT) Director, Kenneth Walsh, recently sold US$98k worth of stock for US$20.88 per share. On the bright side, that's just a small sale and only reduced their holding by 1.9%.

See our latest analysis for Eagle Bancorp Montana

The Last 12 Months Of Insider Transactions At Eagle Bancorp Montana

Notably, that recent sale by Director Kenneth Walsh was not the only time they sold Eagle Bancorp Montana shares this year. They previously made an even bigger sale of -US$175k worth of shares at a price of US$17.46 per share. That means that even when the share price was below the current price of US$20.82, an insider wanted to cash in some shares. 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 3.7%of Kenneth Walsh's holding.

Kenneth Walsh divested 35.01k shares over the last 12 months at an average price of US$18.15. 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!

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

Does Eagle Bancorp Montana Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Eagle Bancorp Montana insiders own 7.7% of the company, worth about US$11m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Eagle Bancorp Montana Insider Transactions Indicate?

An insider hasn't bought Eagle Bancorp Montana stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Eagle Bancorp Montana makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! 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. To that end, you should learn about the 3 warning signs we've spotted with Eagle Bancorp Montana (including 1 which is concerning).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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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.
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