While it's been a great week for Hingham Institution for Savings (NASDAQ:HIFS) shareholders after stock gained 14%, they should consider it with a grain of salt. In spite of the relatively cheap prices, insiders made the decision to sell US$4.1m worth of stock in the last 12 months. This could be a warning indicator of vulnerabilities in the future.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Hingham Institution for Savings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Clerk & Independent Director, Jacqueline Youngworth, for US$1.8m worth of shares, at about US$219 per share. So we know that an insider sold shares at around the present share price of US$208. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last twelve months insiders purchased 909.00 shares for US$155k. On the other hand they divested 22.53k shares, for US$4.1m. 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!

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).

Hingham Institution for Savings Insiders Are Selling The Stock

The last three months saw some Hingham Institution for Savings insider selling. US$69k worth of shares were sold by Clerk & Independent Director Jacqueline Youngworth. But the good news is that there was purchasing too , worth US$26k. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.

Insider Ownership Of Hingham Institution for Savings

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Hingham Institution for Savings insiders own 17% of the company, worth about US$71m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Hingham Institution for Savings Insiders?

Insider selling has just outweighed insider buying in the last three months. But the difference is small, and thus, not concerning. We're a little cautious about the insider selling at Hingham Institution for Savings. The modest level of insider ownership is, at least, some comfort. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 2 warning signs for Hingham Institution for Savings (1 doesn't sit too well with us!) that we believe deserve your full attention.

Of course Hingham Institution for Savings may not be the best stock to buy. So you may wish to see this free collection of high quality 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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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.

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