Home Federal Bancorp of Louisiana Insiders Benefit From Selling Stock At US$13.50

While Home Federal Bancorp, Inc. of Louisiana (NASDAQ:HFBL) shareholders have had a good week with the stock up 13%, insiders can't say the same having sold stock over the past year. They could have sold their shares at much higher prices and gotten a better return on their investment if they had waited.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Home Federal Bancorp of Louisiana Insider Transactions Over The Last Year

The Independent Director, Thomas Trawick, made the biggest insider sale in the last 12 months. That single transaction was for US$111k worth of shares at a price of US$13.50 each. That means that an insider was selling shares at slightly below the current price (US$18.01). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. This single sale was just 36% of Thomas Trawick's stake. Thomas Trawick was the only individual insider to sell over the last year.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Home Federal Bancorp of Louisiana

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Home Federal Bancorp of Louisiana Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Home Federal Bancorp of Louisiana. Specifically, Independent Director Thomas Trawick ditched US$111k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Home Federal Bancorp of Louisiana Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 27% of Home Federal Bancorp of Louisiana shares, worth about US$14m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Home Federal Bancorp of Louisiana Tell Us?

An insider hasn't bought Home Federal Bancorp of Louisiana 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 Home Federal Bancorp of Louisiana 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. When we did our research, we found 3 warning signs for Home Federal Bancorp of Louisiana (1 shouldn't be ignored!) that we believe deserve your full attention.

But note: Home Federal Bancorp of Louisiana 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.

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

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.