We wouldn't blame Esquire Financial Holdings, Inc. (NASDAQ:ESQ) shareholders if they were a little worried about the fact that Selig Zises, the Independent Director recently netted about US$614k selling shares at an average price of US$76.77. However, that sale only accounted for 3.6% of their holding, so arguably it doesn't say much about their conviction.

The Last 12 Months Of Insider Transactions At Esquire Financial Holdings

In fact, the recent sale by Independent Director Selig Zises was not their only sale of Esquire Financial Holdings shares this year. They previously made an even bigger sale of -US$1.1m worth of shares at a price of US$50.29 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$77.69. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 8.3% of Selig Zises's holding.

Esquire Financial Holdings insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does Esquire Financial Holdings 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. 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's great to see that Esquire Financial Holdings insiders own 17% of the company, worth about US$105m. 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 Esquire Financial Holdings Insiders?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But since Esquire Financial Holdings is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for Esquire Financial Holdings you should know about.

But note: Esquire Financial Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.