We note that the Hawthorn Bancshares, Inc. (NASDAQ:HWBK) Independent Director, Frank Burkhead, recently sold US$96k worth of stock for US$31.87 per share. It wasn't a huge sale, but it did reduce their holding by 14%. This does not instill confidence.

Hawthorn Bancshares Insider Transactions Over The Last Year

The Independent Non-Executive Director Douglas Eden made the biggest insider purchase in the last 12 months. That single transaction was for US$294k worth of shares at a price of US$19.63 each. Even though the purchase was made at a significantly lower price than the recent price (US$32.01), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 65.18k shares worth US$1.3m. But they sold 3.00k shares for US$96k. Overall, Hawthorn Bancshares insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Hawthorn Bancshares is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider 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. Hawthorn Bancshares insiders own about US$37m worth of shares. That equates to 17% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Hawthorn Bancshares Tell Us?

The stark truth for Hawthorn Bancshares is that there has been more insider selling than insider buying in the last three months. But we take heart from prior transactions. We like that insiders own a fair amount of the company. So we're not overly bothered by recent selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hawthorn Bancshares. For instance, we've identified 3 warning signs for Hawthorn Bancshares (1 is a bit concerning) you should be aware of.

But note: Hawthorn Bancshares 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.