We'd be surprised if TowneBank (NASDAQ:TOWN) shareholders haven't noticed that the Independent Director, Elizabeth Robertson, recently sold US$453k worth of stock at US$27.63 per share. The eyebrow raising move amounted to a reduction of 21% in their holding.
TowneBank Insider Transactions Over The Last Year
In fact, the recent sale by Elizabeth Robertson was the biggest sale of TowneBank shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$27.28. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Over the last year, we can see that insiders have bought 35.40k shares worth US$908k. But they sold 59.16k shares for US$1.6m. In total, TowneBank insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Does TowneBank Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. TowneBank insiders own about US$162m worth of shares (which is 8.0% 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.
So What Does This Data Suggest About TowneBank Insiders?
The insider sales have outweighed the insider buying, at TowneBank, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing TowneBank. Every company has risks, and we've spotted 1 warning sign for TowneBank you should know about.
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.
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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.