Edgar Smith Bought 2.4% More Shares In First Guaranty Bancshares

Those following along with First Guaranty Bancshares, Inc. (NASDAQ:FGBI) will no doubt be intrigued by the recent purchase of shares by Edgar Smith, Independent Director of the company, who spent a stonking US$822k on stock at an average price of US$8.28. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 2.4%.

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The Last 12 Months Of Insider Transactions At First Guaranty Bancshares

In fact, the recent purchase by Independent Director Edgar Smith was not their only acquisition of First Guaranty Bancshares shares this year. Earlier in the year, they paid US$5.40 per share in a US$1.1m purchase. We do like to see buying, but this purchase was made at well below the current price of US$8.31. 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.

In the last twelve months First Guaranty Bancshares insiders were buying shares, but not selling. The average buy price was around US$7.59. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. 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!

See our latest analysis for First Guaranty Bancshares

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of First Guaranty Bancshares

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. First Guaranty Bancshares insiders own 57% of the company, currently worth about US$78m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About First Guaranty Bancshares Insiders?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about First Guaranty Bancshares. That's what I like to see! Of course, the future is what matters most. So if you are interested in First Guaranty Bancshares, you should check out this free report on analyst forecasts for the company.

Of course First Guaranty Bancshares 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.