In a recent move, Brent M. Giles, the Chief Executive Officer of Hawthorn Bancshares, Inc. (NASDAQ:HWBK), has shown his confidence in the company by purchasing additional shares worth approximately $44.7K. The transactions, which took place over two consecutive days, saw Giles acquiring a total of 2,400 shares at prices ranging from $18.185 to $18.75.
On April 29, 2024, Giles bought 2,000 shares at an average price of $18.75. The following day, he added another 400 shares to his holdings, this time at a slightly lower average price of $18.185. These purchases have increased his direct ownership in the company, reflecting a bullish stance on Hawthorn Bancshares' prospects.
The reported prices represent a weighted average, indicating that the shares were bought in multiple transactions within the stated price range. Giles has committed to providing detailed information about the number of shares purchased at each separate price upon request.
In addition to these purchases, Giles also received 11,151 restricted stock units (RSUs) under the Hawthorn Bancshares, Inc. Equity Incentive Plan. These RSUs are set to vest in equal annual installments over the next three years, contingent upon his continued employment with the bank.
Investors often view insider purchases as a positive signal that company executives believe in the firm's future performance. Giles' recent acquisitions and the award of RSUs suggest that the CEO is optimistic about Hawthorn Bancshares' direction and growth potential.
InvestingPro Insights
The recent insider trading activity at Hawthorn Bancshares, Inc. (NASDAQ:HWBK) by CEO Brent M. Giles has drawn attention to the company's stock performance and financial metrics. According to InvestingPro, Hawthorn Bancshares currently holds a market capitalization of $132.44 million, which may reflect investors' sentiment towards the company's valuation and market position.
Despite the CEO's confidence in the company, Hawthorn Bancshares is trading at a high earnings multiple, with a P/E ratio of 62.28 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at 61.86. This indicates that the stock may be priced at a premium compared to earnings, which is a point of consideration for potential investors. Additionally, the company has experienced a notable revenue decline of 22.07% over the last twelve months as of Q1 2024, which contrasts with the CEO's bullish acquisitions.
However, the company has a strong history of dividend payments, having raised its dividend for 12 consecutive years and maintained dividend payments for 25 consecutive years. The dividend yield as of the latest data stands at 4.17%, which could be appealing to income-focused investors. An InvestingPro Tip also highlights that the company has been profitable over the last twelve months, providing some assurance of financial stability.
For those considering Hawthorn Bancshares as an investment opportunity, additional insights are available on InvestingPro. There are more InvestingPro Tips that could further inform your investment strategy, and you can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Visit https://www.investing.com/pro/HWBK for a deeper analysis and to discover the total number of InvestingPro Tips available for HWBK.
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