Have Insiders Sold TowneBank (NASDAQ:TOWN) Shares Recently?

Investors may wish to note that the Executive Chairman of TowneBank, G. Aston, recently netted US$52k from selling stock, receiving an average price of US$29.55. On the bright side, that's just a small sale and only reduced their holding by 0.4%.

See our latest analysis for TowneBank

The Last 12 Months Of Insider Transactions At TowneBank

In the last twelve months, the biggest single sale by an insider was when the insider, Bradford Cherry, sold US$401k worth of shares at a price of US$20.06 per share. That means that an insider was selling shares at slightly below the current price (US$30.84). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 12% of Bradford Cherry's holding.

In the last year TowneBank insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

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. I reckon it's a good sign if insiders own a significant number of shares in the company. TowneBank insiders own about US$197m worth of shares (which is 8.6% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At TowneBank Tell Us?

Insiders haven't bought TowneBank stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, TowneBank makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. 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 help with this, we've discovered 3 warning signs (1 is significant!) that you ought to be aware of before buying any shares in TowneBank.

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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