Anyone interested in HBT Financial, Inc. (NASDAQ:HBT) should probably be aware that the Director, Patrick Busch, recently divested US$397k worth of shares in the company, at an average price of US$26.48 each. On the bright side, that sale was only 6.3% of their holding, so we doubt it's very meaningful, on its own.

The Last 12 Months Of Insider Transactions At HBT Financial

Notably, that recent sale by Patrick Busch is the biggest insider sale of HBT Financial shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$26.80). 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. We note that the biggest single sale was only 6.3% of Patrick Busch's holding.

All up, insiders sold more shares in HBT Financial than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does HBT Financial Boast High Insider Ownership?

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. HBT Financial insiders own 55% of the company, currently worth about US$542m 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.

So What Do The HBT Financial Insider Transactions Indicate?

The stark truth for HBT Financial is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But since HBT Financial is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

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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.

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.