CNB Financial Corporation (NASDAQ:CCNE) insiders placed bullish bets worth US$737k in the last 12 months
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in CNB Financial Corporation's (NASDAQ:CCNE) case, it's fantastic news for 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.
See our latest analysis for CNB Financial
CNB Financial Insider Transactions Over The Last Year
The Independent Director Francis Straub made the biggest insider purchase in the last 12 months. That single transaction was for US$101k worth of shares at a price of US$20.26 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$18.19). 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.
CNB Financial insiders may have bought shares in the last year, but they didn't sell any. They paid about US$22.67 on average. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
CNB 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.
CNB Financial Insiders Bought Stock Recently
It's good to see that CNB Financial insiders have made notable investments in the company's shares. Overall, nine insiders shelled out US$296k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Does CNB Financial 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.9% of CNB Financial shares, worth about US$11m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About CNB Financial Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest CNB Financial insiders are well aligned, and that they may think the share price is too low. 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. Every company has risks, and we've spotted 1 warning sign for CNB Financial 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.
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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.
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