VP & CFO Of Hingham Institution for Savings Sold 36% Of Their Shares
Some Hingham Institution for Savings (NASDAQ:HIFS) shareholders may be a little concerned to see that the VP & CFO, Cristian Melej, recently sold a substantial US$607k worth of stock at a price of US$304 per share. That's a big disposal, and it decreased their holding size by 36%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Hingham Institution for Savings
Notably, that recent sale by Cristian Melej is the biggest insider sale of Hingham Institution for Savings shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$320. 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 36% of Cristian Melej's holding.
In total, Hingham Institution for Savings insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Hingham Institution for Savings
I will like Hingham Institution for Savings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
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. Hingham Institution for Savings insiders own about US$90m worth of shares. That equates to 13% 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 Hingham Institution for Savings Tell Us?
Unfortunately, there has been more insider selling of Hingham Institution for Savings stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Hingham Institution for Savings is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! While it's good to be aware of 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. Case in point: We've spotted 2 warning signs for Hingham Institution for Savings you should be aware of, and 1 of them is a bit concerning.
But note: Hingham Institution for Savings 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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