Hawthorn Bancshares, Inc. (NASDAQ:HWBK) CEO Brent M. Giles recently purchased shares of the company's common stock, with transactions totaling over $24,000. The purchases, made on March 14, 2024, were disclosed in a regulatory filing with the Securities and Exchange Commission.
Giles acquired a total of 1,224 shares at an average price of $19.506, and an additional 35 shares at an average price of $19.571. The shares were bought in multiple transactions at prices ranging from $19.05 to $19.85. Following these transactions, Giles now directly and indirectly holds a more substantial stake in the company.
The CEO's recent stock purchases are part of a series of transactions that show his ongoing investment in the company. The filing noted that some of the shares are held in trusts, including a profit-sharing trust, and that Giles has acquired additional shares through the company's Dividend Reinvestment Plan (DRIP) and Equity Incentive Plan.
Hawthorn Bancshares, headquartered in Jefferson City, Missouri, operates as the bank holding company for Hawthorn Bank, providing various banking services to individual and corporate customers.
Investors often view stock purchases by company executives as a sign of confidence in the firm's future prospects. Giles' recent acquisition aligns with this perspective, potentially signaling a positive outlook for Hawthorn Bancshares' performance.
InvestingPro Insights
In light of the recent stock purchases by Hawthorn Bancshares' CEO Brent M. Giles, investors may find additional context in the company's financial metrics and market performance. According to InvestingPro data, Hawthorn Bancshares has a market capitalization of $136.28 million and is trading at a high earnings multiple, with a P/E ratio of 137.5 based on the last twelve months as of Q4 2023. This elevated P/E ratio might indicate that the market has high expectations for the company's future earnings growth.
Despite a challenging environment reflected by a significant revenue decline of 28.3% over the last twelve months as of Q4 2023, the company has demonstrated a commitment to shareholder returns, maintaining dividend payments for 25 consecutive years. The dividend yield stands at 3.62% as of the latest data, with a modest dividend growth of 4.01% over the same period. This consistent dividend history, as highlighted in one of the InvestingPro Tips, could be a factor in the CEO's decision to increase his stake in the company.
Another InvestingPro Tip suggests that the stock is currently in oversold territory based on the Relative Strength Index (RSI), which might appeal to value-oriented investors looking for potential entry points. For those interested in a deeper analysis, InvestingPro offers additional tips on Hawthorn Bancshares, which you can explore with a subscription. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain access to a total of 6 more InvestingPro Tips that could further inform your investment decisions.
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