It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Heartland Financial USA, Inc.’s (NASDAQ:HTLF) case, it’s fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Heartland Financial USA
Heartland Financial USA Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Independent Director, Martin Schmitz, for US$201k worth of shares, at about US$50.21 per share. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$28.36. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Martin Schmitz.
In the last twelve months insiders purchased 8.66k shares for US$249k. But insiders sold 4.00k shares worth US$201k. In total, Heartland Financial USA insiders bought more than they sold over the last year. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Heartland Financial USA Insiders Bought Stock Recently
Over the last quarter, Heartland Financial USA insiders have spent a meaningful amount on shares. We can see that President Bruce Lee paid US$95k for shares in the company. No-one sold. That shows some optimism about the company’s future.
Insider Ownership Of Heartland Financial USA
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. Heartland Financial USA insiders own about US$108m worth of shares (which is 9.0% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Heartland Financial USA Insiders?
It’s certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Heartland Financial USA. That’s what I like to see! So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. For example, Heartland Financial USA has 2 warning signs (and 1 which is concerning) we think 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.
