On May 24, 2023, David Nelson, CEO and President of West Bancorp Inc (WTBA, Financial), purchased 1948 shares of the company's stock. This move is noteworthy as it reflects the confidence of the company's top executive in the future prospects of the business. In this article, we will take a closer look at David Nelson, West Bancorp Inc, and the implications of this insider buying activity.
Who is David Nelson?
David Nelson serves as the CEO and President of West Bancorp Inc, a financial holding company that provides community banking and trust services through its subsidiary, West Bank. Nelson has been with the company for several years and has played a significant role in its growth and development. His insider buying activity demonstrates his belief in the company's potential for continued success.
West Bancorp Inc's Business Description
West Bancorp Inc, headquartered in West Des Moines, Iowa, operates as the holding company for West Bank, which provides various banking services to individuals and businesses in the United States. The company offers a range of deposit products, including checking, savings, and money market accounts, as well as certificates of deposit. It also provides commercial and industrial loans, commercial real estate loans, agricultural loans, residential real estate loans, and consumer loans. Additionally, West Bancorp Inc offers trust services, such as investment management, administration, and financial planning. The company operates through a network of branches in central and eastern Iowa, as well as in the Minneapolis/St. Paul metropolitan area in Minnesota.
Analysis of Insider Buy/Sell and Relationship with Stock Price
Over the past year, David Nelson has purchased a total of 6959 shares and has not sold any shares. This indicates a strong conviction in the company's prospects and a willingness to invest personal capital in the business. Furthermore, the insider transaction history for West Bancorp Inc shows a total of 8 insider buys over the past year, with no insider sells during the same period. This trend suggests that insiders are bullish on the company's future and see potential for stock price appreciation.
Valuation
On the day of David Nelson's recent purchase, shares of West Bancorp Inc were trading at $17.23 apiece, giving the stock a market capitalization of $285.612 million. The price-earnings ratio stands at 7.00, which is lower than the industry median of 7.9 and lower than the company's historical median price-earnings ratio. This suggests that the stock is currently undervalued compared to its peers and its historical valuation.
With a price of $17.23 and a GuruFocus Value of $23.19, West Bancorp Inc has a price-to-GF-Value ratio of 0.74. This indicates that the stock is modestly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, which takes into account historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow), a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance from Morningstar analysts.
Conclusion
The recent insider buying activity by David Nelson, CEO and President of West Bancorp Inc, is a positive signal for investors. With a total of 6959 shares purchased over the past year and no shares sold, Nelson's actions demonstrate his confidence in the company's future prospects. The stock's current valuation, as indicated by its price-earnings ratio and price-to-GF-Value ratio, suggests that it is modestly undervalued, providing a potential opportunity for investors seeking exposure to the financial sector. As always, investors should conduct their own research and consider their risk tolerance before making any investment decisions.
