Burke & Herbert Financial Services Corp. (NASDAQ:BHRB) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 12% resulting in a US$101m addition to the company’s market value. Put another way, the original US$2.96m acquisition is now worth US$3.53m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Burke & Herbert Financial Services

Burke & Herbert Financial Services Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Gary Hinkle bought US$340k worth of shares at a price of US$68.09 per share. That means that an insider was happy to buy shares at above the current price of US$64.07. 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. 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 insiders purchased 55.02k shares for US$3.0m. But they sold 2.00k shares for US$134k. In the last twelve months there was more buying than selling by Burke & Herbert Financial Services insiders. The average buy price was around US$53.79. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Burke & Herbert Financial Services Have Bought Stock Recently

At Burke & Herbert Financial Services,over the last quarter, we have observed quite a lot more insider buying than insider selling. In fact, two insiders bought US$385k worth of shares. But we did see Director James Burke sell shares worth US$134k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Burke & Herbert Financial Services insiders own 12% of the company, worth about US$119m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Burke & Herbert Financial Services Insiders?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Burke & Herbert Financial Services. Looks promising! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Burke & Herbert Financial Services has 2 warning signs (1 is a bit unpleasant!) that deserve your attention before going any further with your analysis.

Of course Burke & Herbert Financial Services may not be the best stock to buy. So you may wish to see this free collection of high quality 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.