We'd be surprised if Eagle Bancorp Montana, Inc. (NASDAQ:EBMT) shareholders haven't noticed that the Independent Director, Kenneth Walsh, recently sold US$225k worth of stock at US$22.47 per share. However, the silver lining is that the sale only reduced their total holding by 9.8%, so we're hesitant to read anything much into it, on its own.

Eagle Bancorp Montana Insider Transactions Over The Last Year

In fact, the recent sale by Kenneth Walsh was the biggest sale of Eagle Bancorp Montana shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$23.45). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 9.8% of Kenneth Walsh's stake.

Over the last year, we can see that insiders have bought 760.00 shares worth US$13k. On the other hand they divested 37.50k shares, for US$682k. Over the last year we saw more insider selling of Eagle Bancorp Montana shares, than buying. 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!

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Does Eagle Bancorp Montana Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Eagle Bancorp Montana insiders own 6.4% of the company, worth about US$12m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Eagle Bancorp Montana Insider Transactions Indicate?

The stark truth for Eagle Bancorp Montana is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Eagle Bancorp Montana is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Eagle Bancorp Montana. In terms of investment risks, we've identified 1 warning sign with Eagle Bancorp Montana and understanding it should be part of your investment process.

But note: Eagle Bancorp Montana 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.

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.