We'd be surprised if Burke & Herbert Financial Services Corp. (NASDAQ:BHRB) shareholders haven't noticed that the Director, James Burke, recently sold US$128k worth of stock at US$64.22 per share. On the bright side, that sale was only 0.7% of their holding, so we doubt it's very meaningful, on its own.
Burke & Herbert Financial Services Insider Transactions Over The Last Year
The insider Gary Hinkle made the biggest insider purchase in the last 12 months. That single transaction was for US$340k worth of shares at a price of US$68.09 each. So it's clear an insider wanted to buy, at around the current price, which is US$68.93. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Burke & Herbert Financial Services share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 56.22k shares for US$3.0m. But insiders sold 4.00k shares worth US$262k. In total, Burke & Herbert Financial Services insiders bought more than they sold over the last year. The average buy price was around US$54.01. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Burke & Herbert Financial Services insiders own 12% of the company, worth about US$127m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Burke & Herbert Financial Services Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Burke & Herbert Financial Services. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with Burke & Herbert Financial Services (including 1 which shouldn't be ignored).
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.
