Have German American Bancorp, Inc. (NASDAQ:GABC) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
March 20, 2021
NasdaqGS:GABC

We'd be surprised if German American Bancorp, Inc. (NASDAQ:GABC) shareholders haven't noticed that the Executive Vice Chairman, Clay Ewing, recently sold US$491k worth of stock at US$48.64 per share. That sale was 10% of their holding, so it does make us raise an eyebrow.

See our latest analysis for German American Bancorp

The Last 12 Months Of Insider Transactions At German American Bancorp

In fact, the recent sale by Clay Ewing was the biggest sale of German American Bancorp shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$47.89. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Happily, we note that in the last year insiders paid US$440k for 14.64k shares. On the other hand they divested 24.55k shares, for US$893k. All up, insiders sold more shares in German American Bancorp than they bought, over the last year. The average sell price was around US$36.36. It's not particularly great to see insiders were selling shares at below recent prices. Since insiders sell for many reasons, we wouldn't put too much weight on it. 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!

insider-trading-volume
NasdaqGS:GABC Insider Trading Volume March 20th 2021

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does German American Bancorp Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. German American Bancorp insiders own about US$84m worth of shares. That equates to 6.6% of the company. 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 German American Bancorp Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at German American Bancorp, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But since German American Bancorp is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing German American Bancorp. Every company has risks, and we've spotted 3 warning signs for German American Bancorp (of which 1 is a bit concerning!) you should know about.

But note: German American 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, 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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