The Independent Director of Northwest Bancshares, Inc. (NASDAQ:NWBI), Timothy Hunter, Just Bought 34% More Shares
Potential Northwest Bancshares, Inc. (NASDAQ:NWBI) shareholders may wish to note that the Independent Director, Timothy Hunter, recently bought US$149k worth of stock, paying US$9.97 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 34%.
View our latest analysis for Northwest Bancshares
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$169k worth of shares at a price of US$16.94 per share. That means that an insider was happy to buy shares at above the current price of US$10.86. 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Northwest Bancshares insiders were buying shares, but not selling. Their average price was about US$13.75. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.4% of Northwest Bancshares shares, worth about US$19m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Northwest Bancshares Insider Transactions Indicate?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Northwest Bancshares we think they are probably pretty confident of a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for Northwest Bancshares you should know about.
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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
