Whilst it may not be a huge deal, we thought it was good to see that the Shore Bancshares, Inc. (NASDAQ:SHBI) Independent Director, Dawn Willey, recently bought US$92k worth of stock, for US$12.25 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 36%.

See our latest analysis for Shore Bancshares

The Last 12 Months Of Insider Transactions At Shore Bancshares

In fact, the recent purchase by Dawn Willey was the biggest purchase of Shore Bancshares shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$12.63. Of course they may have changed their mind. But this suggests they are optimistic. 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. Happily, the Shore Bancshares insiders decided to buy shares at close to current prices.

In the last twelve months Shore Bancshares insiders were buying shares, but not selling. They paid about US$13.64 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Shore Bancshares Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Shore Bancshares insiders own 8.7% of the company, worth about US$34m. 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 Do The Shore Bancshares Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Shore Bancshares 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 instance, we've identified 4 warning signs for Shore Bancshares (1 is a bit unpleasant) you should be aware of.

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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.