Hawthorn Bancshares, Inc. (NASDAQ:HWBK) director Shawna M. Hettinger has recently increased her stake in the company through the purchase of additional shares. On March 14, Hettinger bought 500 shares of Hawthorn Bancshares' common stock at a price of $19.49 per share, investing a total of $9,745.
This transaction has brought Hettinger's total holdings in the company to 3,103 shares. The purchase, which occurred on the open market, demonstrates a vote of confidence from the director in the bank's future prospects.
Hawthorn Bancshares, headquartered in Jefferson City, Missouri, operates as the bank holding company for Hawthorn Bank that provides various banking services to individuals and businesses. The acquisition of shares by a company insider is often viewed by investors as a positive signal about the company's financial health and potential for growth.
Investors and market watchers typically keep a close eye on insider transactions, as they can provide valuable insights into the company's internal view of its performance and outlook. Transactions like Hettinger's are publicly disclosed to ensure transparency and provide investors with critical information for their investment decisions.
The recent purchase by Hettinger reaffirms her commitment to the company and provides a noteworthy development for current and potential investors of Hawthorn Bancshares.
InvestingPro Insights
Hawthorn Bancshares, Inc. (NASDAQ:HWBK) has seen notable insider activity with director Shawna M. Hettinger's recent share purchase. In light of this development, a review of the company's financial metrics and InvestingPro Tips can provide a deeper understanding of its investment potential.
InvestingPro Data shows a challenging financial landscape for Hawthorn Bancshares, with a high P/E Ratio of 137.5 and an adjusted P/E Ratio for the last twelve months as of Q4 2023 at 141.74. This indicates that the stock is trading at a high earnings multiple, which is a point of consideration for value-focused investors. Additionally, the company has experienced significant revenue contraction, with a decrease of 28.3% in the last twelve months as of Q4 2023.
Despite this, Hawthorn Bancshares has a strong track record of returning value to shareholders, as reflected by one of the InvestingPro Tips, which highlights that the company has raised its dividend for 12 consecutive years and has maintained dividend payments for 25 consecutive years. This is complemented by an attractive dividend yield of 3.62%.
Another InvestingPro Tip suggests that the stock is currently in oversold territory according to the Relative Strength Index (RSI), which could imply a potential buying opportunity for contrarian investors. Moreover, the company has been profitable over the last twelve months, which could be a reassuring sign amidst the revenue downturn.
For those considering an investment in Hawthorn Bancshares, or seeking to expand their understanding of the company's financial health, additional InvestingPro Tips can be found on the platform. There are 7 more tips available, offering comprehensive analysis and insights. To gain access to these valuable resources, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
As Hawthorn Bancshares approaches its next earnings date on April 24, 2024, investors will be watching closely to see if the insider confidence exhibited by Hettinger's purchase aligns with the company's performance and strategic direction.
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