Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of West Bancorporation, Inc. (NASDAQ:WTBA), that sends out a positive message to the company's shareholders.

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 West Bancorporation

The Last 12 Months Of Insider Transactions At West Bancorporation

In the last twelve months, the biggest single purchase by an insider was when Independent Director Sean McMurray bought US$81k worth of shares at a price of US$16.10 per share. So it's clear an insider wanted to buy, at around the current price, which is US$16.91. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for West Bancorporation share holders is that insiders were buying at near the current price.

West Bancorporation insiders may have bought shares in the last year, but they didn't sell any. 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!

West Bancorporation is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

West Bancorporation Insiders Bought Stock Recently

We saw some West Bancorporation insider buying shares in the last three months. CEO, President & Director David Nelson bought US$35k worth of shares in that time. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that West Bancorporation insiders own 5.1% of the company, worth about US$14m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.