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$794k on stock at an average price of US$10.61. While that only increased their holding size by 1.9%, it is still a big swing by our standards.

First Guaranty Bancshares Insider Transactions Over The Last Year

In fact, the recent purchase by Independent Director Edgar Smith was not their only acquisition of First Guaranty Bancshares shares this year. They previously made an even bigger purchase of US$1.1m worth of shares at a price of US$8.05 per share. Even though the purchase was made at a significantly lower price than the recent price (US$9.88), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months First Guaranty Bancshares insiders were buying shares, but not selling. 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!

First Guaranty Bancshares is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of First Guaranty Bancshares

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that First Guaranty Bancshares insiders own 66% of the company, worth about US$108m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

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

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about First Guaranty Bancshares. Looks promising! Of course, the future is what matters most.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.