Yahoo Finance The Senior Chairman & CEO of Prosperity Bancshares, Inc. (NYSE:PB), David Zalman, Just Bought 1.1% More Shares
Potential Prosperity Bancshares, Inc. (NYSE:PB) shareholders may wish to note that the Senior Chairman & CEO, David Zalman, recently bought US$431k worth of stock, paying US$49.57 for each share. Although the purchase only increased their holding by 1.1%, it is still a solid purchase in our view.
Check out our latest analysis for Prosperity Bancshares
Prosperity Bancshares Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chairman of the Board H. Timanus bought US$2.0m worth of shares at a price of US$51.64 per share. That means that even when the share price was higher than US$49.67 (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. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 103.73k shares worth US$5.2m. But insiders sold 1.82k shares worth US$128k. Overall, Prosperity Bancshares insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Prosperity Bancshares is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Prosperity Bancshares
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Prosperity Bancshares insiders own about US$197m worth of shares (which is 4.3% of the company). 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 Prosperity Bancshares Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Prosperity Bancshares. That's what I like to see! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 2 warning signs we've spotted with Prosperity Bancshares (including 1 which is potentially serious).
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, but not derivative transactions.
This article by Simply Wall St is general in nature. 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.
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