Trade Alert: Independent Director Of West Bancorporation Steven Gaer Has Sold Stock
Anyone interested in West Bancorporation, Inc. (NASDAQ:WTBA) should probably be aware that the Independent Director, Steven Gaer, recently divested US$193k worth of shares in the company, at an average price of US$31.13 each. That sale was 26% of their holding, so it does make us raise an eyebrow.
The Last 12 Months Of Insider Transactions At West Bancorporation
Over the last year, we can see that the biggest insider sale was by the insider, George Milligan, for US$345k worth of shares, at about US$22.00 per share. That means that an insider was selling shares at slightly below the current price (US$30.53). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. It is worth noting that this sale was only 24% of George Milligan's holding.
Insiders in West Bancorporation didn't buy any shares in the last year. You can see the insider transactions (by companies and 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!
Check out our latest analysis for West Bancorporation
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Does West Bancorporation Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 4.4% of West Bancorporation shares, worth about US$23m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At West Bancorporation Tell Us?
An insider hasn't bought West Bancorporation stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But it is good to see that West Bancorporation is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. 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. In terms of investment risks, we've identified 1 warning sign with West Bancorporation and understanding it should be part of your investment process.
But note: West Bancorporation 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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