TowneBank (NASDAQ:TOWN) shareholders (or potential shareholders) will be happy to see that insider J. Perry recently bought a whopping US$503k worth of stock, at a price of US$35.95. That purchase boosted their holding by 83%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

The Last 12 Months Of Insider Transactions At TowneBank

In fact, the recent purchase by J. Perry was the biggest purchase of TowneBank shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of US$35.73. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 88.32k shares worth US$3.0m. But they sold 14.16k shares for US$497k. In total, TowneBank insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Does TowneBank Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that TowneBank insiders own 6.4% of the company, worth about US$208m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At TowneBank Tell Us?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest TowneBank insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of TowneBank.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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.