This Insider Has Just Sold Shares In West Bancorporation, Inc. (NASDAQ:WTBA)

By
Simply Wall St
Published
November 07, 2021
NasdaqGS:WTBA
Source: Shutterstock

We'd be surprised if West Bancorporation, Inc. (NASDAQ:WTBA) shareholders haven't noticed that the Executive VP, Douglas Gulling, recently sold US$215k worth of stock at US$32.38 per share. The eyebrow raising move amounted to a reduction of 13% in their holding.

Check out our latest analysis for West Bancorporation

The Last 12 Months Of Insider Transactions At West Bancorporation

In fact, the recent sale by Douglas Gulling was the biggest sale of West Bancorporation shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$33.75. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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 13% of Douglas Gulling's holding.

Over the last year, we can see that insiders have bought 21.27k shares worth US$626k. On the other hand they divested 31.64k shares, for US$928k. Douglas Gulling divested 31.64k shares over the last 12 months at an average price of US$29.33. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:WTBA Insider Trading Volume November 8th 2021

I will like West Bancorporation better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does West Bancorporation Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that West Bancorporation insiders own 3.9% of the company, worth about US$22m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About West Bancorporation Insiders?

The stark truth for West Bancorporation is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, West Bancorporation makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. While we like knowing 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. Case in point: We've spotted 2 warning signs for West Bancorporation you should be aware of, and 1 of these can't be ignored.

Of course West Bancorporation may not be the best stock to buy. So you may wish to see this free collection of high quality 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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