We'd be surprised if Horizon Bancorp, Inc. (NASDAQ:HBNC) shareholders haven't noticed that the Executive VP & Chief Commercial Banking Officer, Dennis Kuhn, recently sold US$122k worth of stock at US$14.20 per share. The eyebrow raising move amounted to a reduction of 33% in their holding.
Horizon Bancorp Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Independent Director, Michele Magnuson, sold US$335k worth of shares at a price of US$18.50 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$14.26. So it may not shed much light on insider confidence at current levels.
In total, Horizon Bancorp insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insider Ownership of Horizon Bancorp
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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Horizon Bancorp insiders own 13% of the company, worth about US$82m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Horizon Bancorp Tell Us?
An insider hasn't bought Horizon Bancorp 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, Horizon Bancorp makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 3 warning signs for Horizon Bancorp (1 doesn't sit too well with us) you should be aware of.
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, but not derivative transactions.
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