Even if it's not a huge purchase, we think it was good to see that Karen Musson, the Independent Director of Central Valley Community Bancorp (NASDAQ:CVCY) recently shelled out US$60k to buy stock, at US$12.05 per share. While that isn't the hugest buy, it actually boosted their shareholding by 148%, which is good to see.
Central Valley Community Bancorp Insider Transactions Over The Last Year
Notably, that recent purchase by Karen Musson is the biggest insider purchase of Central Valley Community Bancorp shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$11.63. 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. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 22.81k shares for US$280k. But they sold 2.00k shares for US$43k. In the last twelve months there was more buying than selling by Central Valley Community Bancorp insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Central Valley Community Bancorp is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Central Valley Community Bancorp 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Central Valley Community Bancorp insiders own 16% of the company, worth about US$24m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Central Valley Community Bancorp Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Central Valley Community Bancorp insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 3 warning signs for Central Valley Community Bancorp (of which 1 is concerning!) you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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, but not derivative transactions.
This article by Simply Wall St is general in nature. 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.
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