Director of Hawthorn Bancshares, Inc. (NASDAQ:HWBK), Eden Douglas Todd, has made a significant investment in the company's stock, purchasing shares valued at approximately $294,390. This transaction, which occurred on May 3, 2024, involved the acquisition of 15,000 shares at an average price of $19.626 per share.
The purchase was executed through a series of transactions with prices ranging from $19.39 to $19.96. This indicates a strong vote of confidence from Todd in the bank holding company, which is based in Jefferson City, Missouri, and specializes in national commercial banking services.
Eden Douglas Todd, who serves on the board of directors for Hawthorn Bancshares, now holds a total of 76,826 shares in the company, according to the most recent filings. The shares acquired are held indirectly by a trust, further diversifying Todd's investment in the company.
Investors often look to the buying and selling activities of company insiders like directors and executives to gain insights into the company's financial health and future prospects. Such transactions can be indicative of how these insiders perceive the company's valuation and long-term growth potential.
Hawthorn Bancshares, Inc., under the ticker HWBK, has not released any official statements regarding this transaction. However, the details of the stock purchase are fully disclosed and available for public scrutiny, as per the regulatory requirements.
This recent purchase by Director Eden Douglas Todd underscores a direct involvement and potential optimism in the company's trajectory, as insiders are typically privy to detailed and material business information. Shareholders and potential investors of Hawthorn Bancshares will likely keep a close watch on the company's performance and any further insider trading activity for indications of where the stock might be headed.
InvestingPro Insights
In light of the recent insider purchase by Director Eden Douglas Todd at Hawthorn Bancshares, Inc. (NASDAQ:HWBK), it's worth considering the company's financial metrics and market performance to understand the potential implications of this investment. Hawthorn Bancshares currently has a market capitalization of approximately $136.16 million and is trading at an earnings multiple of 64.03, which is considered high relative to the industry average. This suggests that investors are expecting higher earnings growth in the future compared to the company's peers.
Despite the company's significant revenue decline over the last twelve months, with a decrease of 22.07%, Hawthorn Bancshares has managed to maintain a dividend yield of 3.92%, which is a testament to its commitment to shareholder returns. Notably, the company has raised its dividend for an impressive 12 consecutive years and has maintained dividend payments for 25 consecutive years, as indicated by two of the InvestingPro Tips. This consistent dividend history may be a factor in the confidence displayed by Director Todd's recent stock purchase.
However, it's important to note that the company's price has fallen by 18.79% over the last three months, which may present a buying opportunity for investors who believe in the company's fundamentals and long-term prospects. The InvestingPro Fair Value estimate for Hawthorn Bancshares stands at $15.12, providing a reference point for investors considering the stock's current price level.
For those looking for more insights, there are additional InvestingPro Tips available for Hawthorn Bancshares on their website. These tips could provide further clarity on the company's performance and outlook. Additionally, by using the coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription to access these valuable insights.
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