Investors who take an interest in Cambridge Bancorp (NASDAQ:CATC) should definitely note that the Chairman & CEO, Denis Sheahan, recently paid US$72.85 per share to buy US$146k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 7.9%.
Cambridge Bancorp Insider Transactions Over The Last Year
Notably, that recent purchase by Denis Sheahan is the biggest insider purchase of Cambridge Bancorp shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$72.55). It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.
While Cambridge Bancorp insiders bought shares last year, they didn't sell. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Cambridge Bancorp 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.
Insider Ownership of Cambridge Bancorp
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Cambridge Bancorp insiders own about US$13m worth of shares. That equates to 3.2% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Cambridge Bancorp Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Cambridge Bancorp we think they are probably pretty confident of a bright future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Cambridge Bancorp may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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