Bullish Capitol Federal Financial Insiders Loaded Up On US$622.3k Of Stock
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Capitol Federal Financial, Inc.'s (NASDAQ:CFFN) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Capitol Federal Financial
Capitol Federal Financial Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Morris Huey for US$81k worth of shares, at about US$7.87 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$4.35). 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. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 91.90k shares for US$622k. On the other hand they divested 2.27k shares, for US$19k. In total, Capitol Federal Financial insiders bought more than they sold over the last year. Their average price was about US$6.77. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Capitol Federal Financial is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At Capitol Federal Financial Have Bought Stock Recently
It's good to see that Capitol Federal Financial insiders have made notable investments in the company's shares. Overall, two insiders shelled out US$85k for shares in the company -- and none sold. That shows some optimism about the company's future.
Insider Ownership Of Capitol Federal Financial
Many investors like to check how much of a company is owned by 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 Capitol Federal Financial insiders own 2.1% of the company, worth about US$12m. 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 Capitol Federal Financial Tell Us?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Capitol Federal Financial we think they are probably pretty confident of a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 2 warning signs we've spotted with Capitol Federal Financial (including 1 which is concerning).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
