Potential Northwest Bancshares, Inc. (NASDAQ:NWBI) shareholders may wish to note that the Independent Director, Timothy Hunter, recently bought US$125k worth of stock, paying US$12.52 for each share. While that’s a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 8.7%.
The Last 12 Months Of Insider Transactions At Northwest Bancshares
In fact, the recent purchase by Independent Director Timothy Hunter was not their only acquisition of Northwest Bancshares shares this year. They previously made an even bigger purchase of US$139k worth of shares at a price of US$13.88 per share. That means that even when the share price was higher than US$12.26 (the recent price), an insider wanted to purchase shares. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders paid US$680k for 51.13k shares. But they sold 2.27k shares for US$32k. Overall, Northwest Bancshares insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Northwest Bancshares is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Northwest Bancshares Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Northwest Bancshares insiders own 1.2% of the company, worth about US$19m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Northwest Bancshares Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in Northwest Bancshares shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Northwest Bancshares. Every company has risks, and we’ve spotted 2 warning signs for Northwest Bancshares (of which 1 is potentially serious!) 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, but not derivative transactions.
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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.