Heartland Financial USA, Inc. (NASDAQ:HTLF) insiders made a handsome sum after selling stock worth US$48.26 per share at present for US$50.80

By
Simply Wall St
Published
April 20, 2022
NasdaqGS:HTLF
Source: Shutterstock

Heartland Financial USA, Inc.'s (NASDAQ:HTLF) stock rose 5.3% last week, but insiders who sold US$254k worth of stock over the last year are probably in a more advantageous position. Selling at an average price of US$50.80, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Heartland Financial USA

Heartland Financial USA Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Chairman, John Schmidt, for US$254k worth of shares, at about US$50.80 per share. That means that an insider was selling shares at around the current price of US$48.26. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. John Schmidt was the only individual insider to sell shares in the last twelve months.

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!

insider-trading-volume
NasdaqGS:HTLF Insider Trading Volume April 20th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Heartland Financial USA 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. Heartland Financial USA insiders own 8.6% of the company, currently worth about US$176m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Heartland Financial USA Tell Us?

The fact that there have been no Heartland Financial USA insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Heartland Financial USA insider transactions don't fill us with confidence. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Heartland Financial USA.

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, but not derivative transactions.

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