Don't Ignore The Insider Selling In Hingham Institution for Savings

We'd be surprised if Hingham Institution for Savings (NASDAQ:HIFS) shareholders haven't noticed that the Clerk & Independent Director, Jacqueline Youngworth, recently sold US$141k worth of stock at US$281 per share. On the bright side, that sale was only 1.4% of their holding, so we doubt it's very meaningful, on its own.

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The Last 12 Months Of Insider Transactions At Hingham Institution for Savings

In fact, the recent sale by Jacqueline Youngworth was the biggest sale of Hingham Institution for Savings shares made by an insider individual in the last twelve months, according to our records. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$251. So it may not shed much light on insider confidence at current levels.

Happily, we note that in the last year insiders paid US$381k for 1.60k shares. On the other hand they divested 2.65k shares, for US$688k. Over the last year we saw more insider selling of Hingham Institution for Savings shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Hingham Institution for Savings

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

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Hingham Institution for Savings insiders own 15% of the company, worth about US$86m. 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 Hingham Institution for Savings Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Hingham Institution for Savings stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Hingham Institution for Savings 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! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Hingham Institution for Savings is showing 2 warning signs in our investment analysis, and 1 of those can't be ignored...

But note: Hingham Institution for Savings 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.