It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Finward Bancorp's (NASDAQ:FNWD) case, it's fantastic news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Finward Bancorp

Finward Bancorp Insider Transactions Over The Last Year

Notably, that recent purchase by Carolyn Burke is the biggest insider purchase of Finward Bancorp shares that we've seen in the last year. That means that even when the share price was higher than US$26.38 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Over the last year, we can see that insiders have bought 4.06k shares worth US$113k. But they sold 738.70 shares for US$21k. In the last twelve months there was more buying than selling by Finward Bancorp insiders. 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!

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

Insiders At Finward Bancorp Have Bought Stock Recently

It's good to see that Finward Bancorp insiders have made notable investments in the company's shares. Overall, three insiders shelled out US$103k for shares in the company -- and none sold. That shows some optimism about the company's future.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 13% of Finward Bancorp shares, worth about US$15m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Finward Bancorp Insider Transactions Indicate?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Finward Bancorp we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Finward Bancorp you should be aware of, and 1 of these is a bit concerning.

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.

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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.