In a recent transaction, Frank E. Burkhead, a director at Hawthorn Bancshares, Inc. (NASDAQ:HWBK), increased his stake in the company by purchasing additional shares. On April 29, Burkhead acquired 500 shares of Hawthorn Bancshares at a price of $19.0951 per share, investing a total of $9,547.
This purchase is a part of Burkhead's ongoing investment in the company and is notable as it reflects a director's confidence in the firm's prospects. Following this transaction, Burkhead's direct holdings in Hawthorn Bancshares have increased, which now includes shares acquired through the company's Dividend Reinvestment Plan (DRIP).
Investors often monitor insider transactions such as these for insights into the sentiment of high-ranking officials within a company. While the motivations behind such purchases can vary, they can sometimes be interpreted as a bullish signal when directors increase their own stakes in the company they help govern.
Hawthorn Bancshares, based in Jefferson City, Missouri, operates as the bank holding company for Hawthorn Bank, providing various banking services to individual and corporate customers. The bank's shares are traded on the NASDAQ under the ticker symbol HWBK.
InvestingPro Insights
As Frank E. Burkhead bolsters his position in Hawthorn Bancshares, Inc. (NASDAQ:HWBK), current metrics from InvestingPro can offer additional context to investors evaluating the company's financial health and market performance. Hawthorn Bancshares has a notable track record of dividend consistency, having increased its dividend for 12 consecutive years and maintained payments for 25 consecutive years, which could be a sign of the company's commitment to returning value to shareholders.
Despite this commitment, the company is currently trading at a high earnings multiple with a P/E ratio of 61.75 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at 61.33. This suggests that the market has high expectations for future earnings growth, which investors should consider when assessing the stock's valuation. Additionally, the company's revenue has seen a decline of 22.07% over the last twelve months as of Q1 2024, a metric that may raise concerns about its growth trajectory.
InvestingPro Tips indicate that the stock has fared poorly over the last month, with a price total return of -13.02%, and has seen a significant drop over the last three months, with a price total return of -26.96%. However, it's important to note that the company has remained profitable over the last twelve months. For investors seeking a more comprehensive analysis, there are additional InvestingPro Tips available, which can be accessed through the website, offering deeper insights into Hawthorn Bancshares' performance and potential investment opportunities.
To explore these insights further and gain access to a wealth of financial analytics, investors may consider a subscription to InvestingPro. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With a total of 7 additional InvestingPro Tips listed for Hawthorn Bancshares, investors can equip themselves with a more nuanced understanding of the company's financial landscape.
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