We'd be surprised if Home BancShares, Inc. (NYSE:HOMB) shareholders haven't noticed that an insider, John Allison, recently sold US$406k worth of stock at US$30.06 per share. However, the silver lining is that the sale only reduced their total holding by 1.9%, so we're hesitant to read anything much into it, on its own.
Home BancShares Insider Transactions Over The Last Year
Notably, that recent sale by Co-Founder John Allison was not the only time they traded Home BancShares shares this year. They previously purchased US$2.7m worth of shares at a price of US$26.96 per share. We do like to see buying, but this purchase was made at well below the current price of US$30.12. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Home BancShares
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Home BancShares insiders own 6.2% of the company, currently worth about US$379m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Home BancShares Tell Us?
Insiders haven't bought Home BancShares stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. We are also comforted by the high levels of insider ownership. So we're happy to look past recent trading. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Home BancShares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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