Some Waterstone Financial, Inc. (NASDAQ:WSBF) shareholders may be a little concerned to see that the Independent Director, Michael Hansen, recently sold a substantial US$1.2m worth of stock at a price of US$15.16 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.

The Last 12 Months Of Insider Transactions At Waterstone Financial

Notably, that recent sale by Independent Director Michael Hansen was not the only time they sold Waterstone Financial shares this year. They previously made an even bigger sale of -US$2.0m worth of shares at a price of US$14.05 per share. That means that even when the share price was below the current price of US$15.38, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was 64% of Michael Hansen's stake.

Michael Hansen sold a total of 266.41k shares over the year at an average price of US$14.34. 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!

I will like Waterstone Financial better if I see some big insider buys.

Does Waterstone Financial 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Waterstone Financial insiders own about US$19m worth of shares. That equates to 6.4% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Waterstone Financial Insiders?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Waterstone Financial is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

But note: Waterstone Financial 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.