Did QCR Holdings, Inc. (NASDAQ:QCRH) Insiders Buy Up More Shares?

We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in QCR Holdings, Inc. (NASDAQ:QCRH).

Do Insider Transactions Matter?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

Check out our latest analysis for QCR Holdings

The Last 12 Months Of Insider Transactions At QCR Holdings

In the last twelve months, the biggest single purchase by an insider was when Senior VP & Chief Accounting Officer Nick Anderson bought US$61k worth of shares at a price of US$32.94 per share. So it's clear an insider wanted to buy, at around the current price, which is US$38.59. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for QCR Holdings share holders is that insiders were buying at near the current price.

Over the last year, we can see that insiders have bought 3.65k shares worth US$110k. But insiders sold 881.00 shares worth US$33k. In total, QCR Holdings insiders bought more than they sold 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!

QCR Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

QCR Holdings Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at QCR Holdings. Specifically, Senior VP & Chief Accounting Officer Nick Anderson bought US$61k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Insider Ownership of QCR Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. QCR Holdings insiders own about US$37m worth of shares. That equates to 6.1% 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.

What Might The Insider Transactions At QCR Holdings Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Insiders likely see value in QCR Holdings shares, given these transactions (along with notable insider ownership of the company). 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. For example - QCR Holdings has 1 warning sign we think you should be aware of.

But note: QCR Holdings 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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