Investors who take an interest in Burke & Herbert Financial Services Corp. (NASDAQ:BHRB) should definitely note that insider Gary Hinkle recently paid US$64.97 per share to buy US$195k worth of the stock. Although the purchase only increased their holding by 1.0%, it is still a solid purchase in our view.

View our latest analysis for Burke & Herbert Financial Services

The Last 12 Months Of Insider Transactions At Burke & Herbert Financial Services

In fact, the recent purchase by insider Gary Hinkle was not their only acquisition of Burke & Herbert Financial Services shares this year. Earlier in the year, they paid US$68.56 per share in a US$356k purchase. That means that an insider was happy to buy shares at above the current price of US$63.17. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid US$3.5m for 61.11k shares. On the other hand they divested 4.00k shares, for US$262k. In total, Burke & Herbert Financial Services insiders bought more than they sold over the last year. They paid about US$57.72 on average. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

Insider Ownership Of Burke & Herbert Financial Services

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Burke & Herbert Financial Services insiders own 13% of the company, currently worth about US$123m based on the recent share price. 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. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Burke & Herbert Financial Services insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Burke & Herbert Financial Services.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.