Over the last year, a good number of insiders have significantly increased their holdings in Bowhead Specialty Holdings Inc. (NYSE:BOW). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Bowhead Specialty Holdings

Bowhead Specialty Holdings Insider Transactions Over The Last Year

The Founder Stephen Sills made the biggest insider purchase in the last 12 months. That single transaction was for US$1.0m worth of shares at a price of US$17.00 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$36.67. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months Bowhead Specialty Holdings insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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).

Does Bowhead Specialty Holdings Boast High Insider Ownership?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Bowhead Specialty Holdings insiders own about US$48m worth of shares. That equates to 4.0% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Bowhead Specialty Holdings Tell Us?

The fact that there have been no Bowhead Specialty Holdings insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Bowhead Specialty Holdings insiders are doubting the company, and they do own shares. Of course, the future is what matters most. So if you are interested in Bowhead Specialty Holdings, you should check out this free report on analyst forecasts for the company.

Of course Bowhead Specialty Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.