We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. 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?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. 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.’
The Last 12 Months Of Insider Transactions At QCR Holdings
In the last twelve months, the biggest single purchase by an insider was when Michael Peterson bought US$670k worth of shares at a price of US$33.51 per share. That implies that an insider found the current (approximate) price enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. Nonetheless, we consider it positive if insiders want to buy at around the current share price.
Happily, we note that in the last year insiders paid US$771k for 22.97k shares. But insiders sold 2.36k shares worth US$101k. In total, QCR Holdings insiders bought more than they sold over the last year. They paid about US$33.55 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price of US$34.35. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at QCR Holdings Have Sold Stock Recently
Over the last three months, we’ve seen a bit of insider selling at QCR Holdings. Executive VP & Chief Deposit Officer John Anderson sold just US$19k worth of shares in that time. It’s not great to see insider selling, nor the lack of recent buyers. But the selling simply isn’t sufficiently substantial to be of much use as a signal.
Does QCR Holdings Boast High Insider Ownership?
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$34m worth of shares. That equates to 6.4% 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 Do The QCR Holdings Insider Transactions Indicate?
We note a that there’s been a little more insider selling than buying, recently. But the difference is small, and thus, not concerning. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in QCR Holdings and we see no evidence to suggest they are worried about the future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.