Yahoo Finance Trade Alert: The Independent Chairman Of Hanmi Financial Corporation (NASDAQ:HAFC), John Ahn, Has Just Spent US$70k Buying 30% More Shares
Even if it's not a huge purchase, we think it was good to see that John Ahn, the Independent Chairman of Hanmi Financial Corporation (NASDAQ:HAFC) recently shelled out US$70k to buy stock, at US$7.78 per share. That purchase might not be huge but it did increase their holding by 30%.
Check out our latest analysis for Hanmi Financial
Hanmi Financial Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Chairman John Ahn was not the only time they bought Hanmi Financial shares this year. They previously made an even bigger purchase of US$119k worth of shares at a price of US$16.98 per share. That means that even when the share price was higher than US$8.79 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares is very important. 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.
In the last twelve months Hanmi Financial insiders were buying shares, but not selling. The average buy price was around US$10.10. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Hanmi Financial is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. Our data indicates that Hanmi Financial insiders own about US$5.7m worth of shares (which is 2.1% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Hanmi Financial Tell Us?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Hanmi Financial insiders are reasonably well aligned, and optimistic for the future. 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. While conducting our analysis, we found that Hanmi Financial has 3 warning signs and it would be unwise to ignore them.
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, but not derivative transactions.
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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. Thank you for reading.
