We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in Colony Bankcorp, Inc. (NASDAQ:CBAN).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
Colony Bankcorp Insider Transactions Over The Last Year
President & CEO Thomas Fountain made the biggest insider purchase in the last 12 months. That single transaction was for US$174k worth of shares at a price of US$17.39 each. That means that an insider was happy to buy shares at above the current price. 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. It’s not at all bad to see insiders buy shares at or above current prices.
Happily, we note that in the last year insiders paid US$302k for 17.52k shares. But insiders sold 5.00k shares worth US$78k. Overall, Colony Bankcorp insiders were net buyers last year. They paid about US$17.21 on average. I’d consider this a positive as it suggests insiders see value at around the current price, which is US$14.38. You can see a visual depiction of insider transactions 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!
Colony Bankcorp 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.
Have Colony Bankcorp Insiders Traded Recently?
We’ve only seen a tiny insider purchase valued at US$2.6k, in the last three months. Overall, we don’t think these recent trades are particularly informative, one way or the other.
Does Colony Bankcorp Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It’s great to see that Colony Bankcorp insiders own 13% of the company, worth about US$16m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Colony Bankcorp Insiders?
Our data shows a little more insider buying than selling in the last three months. But overall the difference isn’t worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. Overall we don’t see anything to make us think Colony Bankcorp insiders are doubting the company, and they do own shares. Along with insider transactions, I recommend checking if Colony Bankcorp is growing revenue. This free chart of historic revenue and earnings should make that easy.
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.