Home Federal Bancorp of Louisiana Insiders Benefitted From Selling Stock At US$11.82

While it’s been a great week for Home Federal Bancorp, Inc. of Louisiana (NASDAQ:HFBL) shareholders after stock gained 12%, not so much for insiders who sold stock over the past year. The return on their investment would have been much higher had they held on to their stock.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Home Federal Bancorp of Louisiana

The Last 12 Months Of Insider Transactions At Home Federal Bancorp of Louisiana

Over the last year, we can see that the biggest insider sale was by the Independent Director, Timothy Wilhite, for US$122k worth of shares, at about US$12.20 per share. That means that an insider was selling shares at slightly below the current price (US$13.73). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. This single sale was just 21% of Timothy Wilhite's stake.

All up, insiders sold more shares in Home Federal Bancorp of Louisiana than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Home Federal Bancorp of Louisiana Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Home Federal Bancorp of Louisiana. Specifically, Senior VP & CFO Glen Brown ditched US$77k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does Home Federal Bancorp of Louisiana 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. We usually like to see fairly high levels of insider ownership. Home Federal Bancorp of Louisiana insiders own about US$11m worth of shares. That equates to 28% of the company. 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 Does This Data Suggest About Home Federal Bancorp of Louisiana Insiders?

An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Home Federal Bancorp of Louisiana. While conducting our analysis, we found that Home Federal Bancorp of Louisiana has 2 warning signs and it would be unwise to ignore these.

But note: Home Federal Bancorp of Louisiana 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.