CNB Financial Insiders Added US$511k Of Stock To Their Holdings
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in CNB Financial Corporation's (NASDAQ:CCNE) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for CNB Financial
CNB Financial Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Francis Straub bought US$101k worth of shares at a price of US$20.26 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$17.85). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. Notably Francis Straub was also the biggest seller.
Over the last year, we can see that insiders have bought 26.12k shares worth US$511k. On the other hand they divested 7.81k shares, for US$136k. In total, CNB Financial insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders At CNB Financial Have Bought Stock Recently
It's good to see that CNB Financial insiders have made notable investments in the company's shares. In total, insiders bought US$113k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
Does CNB Financial Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that CNB Financial insiders own 3.0% of the company, worth about US$11m. 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 CNB Financial Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. 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. 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 1 warning sign for CNB Financial you should know about.
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.
