Eagle Bancorp Falls To US$16.71, But Insiders Sold At Lower Price

Eagle Bancorp, Inc.'s (NASDAQ:EGBN) value has fallen 11% in the last week, but insiders who sold US$77k worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of US$25.53 is still lower than the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Eagle Bancorp Insider Transactions Over The Last Year

The Executive VP & Chief Legal Officer, Paul Saltzman, made the biggest insider sale in the last 12 months. That single transaction was for US$77k worth of shares at a price of US$25.53 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$16.71. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Paul Saltzman.

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!

See our latest analysis for Eagle Bancorp

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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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Eagle Bancorp insiders own 3.7% of the company, worth about US$19m. 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 Does This Data Suggest About Eagle Bancorp Insiders?

The fact that there have been no Eagle Bancorp insider transactions recently certainly doesn't bother us. Our analysis of Eagle Bancorp insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. 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 assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Eagle Bancorp.

But note: Eagle Bancorp 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.