Possible Bearish Signals With Hingham Institution for Savings Insiders Disposing Stock

The fact that multiple Hingham Institution for Savings (NASDAQ:HIFS) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Hingham Institution for Savings

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

The Clerk & Independent Director, Jacqueline Youngworth, made the biggest insider sale in the last 12 months. That single transaction was for US$1.8m worth of shares at a price of US$219 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$197). So it is hard to draw any strong conclusion from it.

Over the last year, we can see that insiders have bought 909.00 shares worth US$155k. But insiders sold 22.53k shares worth US$4.1m. All up, insiders sold more shares in Hingham Institution for Savings 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

Insiders At Hingham Institution for Savings Have Sold Stock Recently

The last three months saw some Hingham Institution for Savings insider selling. US$69k worth of shares were sold by Clerk & Independent Director Jacqueline Youngworth. But at least we saw US$41k worth of buying. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Hingham Institution for Savings insiders own about US$67m worth of shares. That equates to 17% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Hingham Institution for Savings Insiders?

Insider selling has just outweighed insider buying in the last three months. But the difference isn't enough to have us worried. Recent insider selling makes us a little nervous, in light of the broader picture of Hingham Institution for Savings insider transactions. But we do like the fact that insiders own a fair chunk of the company. 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. To that end, you should learn about the 2 warning signs we've spotted with Hingham Institution for Savings (including 1 which is significant).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com