Should you be worried when insiders Guaranty Bancorp (NASDAQ: GBNK) sell? – Simply Wall St News

Guaranty Bancorp is the bank holding company of Guaranty Bank and Trust Company, which provides various banking and other financial services to consumers and small and medium-sized businesses. Insiders Guaranty Bancorp have disengaged from
4.21k part
in the
small cap stocks
in the last three months.
A well-known argument is that insiders who withdraw from the shares of their own company send a pessimistic signal.
The MIT Press (1998) published an article showing that shares following insider sales underperformed the market by 2.7%.
However, it may not be enough to base your investment decision simply on these signals.
Today, we will assess whether these decisions are supported by analysts' expectations of future growth as well as recent share price movements.


See our latest analysis for Guaranty Bancorp

Who sells their shares?

In the last three months, more shares have been sold than purchased by Guaranty Bancorp insiders .
In total, individual insiders own
More than 1.2 million shares in the company, accounting for about 4.1% of total shares outstanding.
Insiders who have recently reduced their holdings are:

Name	Management	Table	Total Annual Compensation
Keith Dickelman
Michael DiPetro	✔
Patrick O. Brien

The Growth Prospects Are- they bear?

On the surface,
The future of Guaranty Bancorp
good.
Explore further in annual growth rates,
Guaranty Bancorp should know
double-digit revenue growth over the year
seems to generate higher expected earnings growth.
This is potentially the result of successful growth initiatives in place and strong cost controls, leading to sustainable operations.
The net sales activities of insiders are contrary to what we expected given a significantly positive earnings outlook, indicating that they may know something that the market does not know. Insiders could perceive high growth as unsustainable or that it has been overstated in the current course of action.

Can stock volatility explain the sale?

Another reason for recent transactions could be that insiders profit from the volatility of stock prices.
Volatility offers the opportunity to negotiate market inefficiencies when the stock is undervalued relative to the intrinsic value of the stock.
Guaranty Bancorp's shares have ranged from $ 35.05 to $ 28.3 in the last three months.
This indicates
reasonable volatility with a change
23.85%.
Insider purchases may not be motivated by this move, but they may simply want to diversify their holdings, distribute shares to investors or simply demand money for personal reasons.

Next Steps:

The net selling activity of Guaranty Bancorp tells us that the title has fallen out of favor with some insiders lately,
although the positive growth of expected profits tells us a different story,
and the movement of the price of the action can be too trivial to cash on any bad evaluation.
However, it is important to keep in mind that the sale of insiders is not necessarily based on belief in the future ability of the company.
In addition, although insider trading may be a useful signal, it is not enough on its own to make an investment decision.
there is
two
essential
factors
you should
consider further:

1. Financial Health : Does Guaranty Bancorp Have a Healthy Balance Sheet? Take a look at our free balance sheet analysis with six simple controls on key factors like leverage and risk.
2. Other high quality alternatives : Are there any other high quality titles that Guaranty Bancorp? Explore our interactive list of high quality actions to get an idea of ​​what else you can miss!

NB: The figures in this article are calculated from data of the last twelve months, which refer to the 12-month period ending on the last date of the month; the financial statement is dated. This may not be consistent with the figures in the annual report.