As Community West Bancshares' (NASDAQ:CWBC) market cap increased US$13m, insiders who bought last year may be reflecting on buying more
Community West Bancshares (NASDAQ:CWBC) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 11%, resulting in a US$13m rise in the company's market capitalisation. In other words, the original US$230k purchase is now worth US$263k.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Community West Bancshares
The Last 12 Months Of Insider Transactions At Community West Bancshares
Over the last year, we can see that the biggest insider purchase was by Independent Chairman of the Board William Peeples for US$65k worth of shares, at about US$12.90 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$15.15. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Community West Bancshares insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
Community West Bancshares Insiders Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Community West Bancshares. Insiders purchased US$26k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.
Insider Ownership of Community West Bancshares
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. Insiders own 26% of Community West Bancshares shares, worth about US$34m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Community West Bancshares Insider Transactions Indicate?
We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Community West Bancshares and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Community West Bancshares. In terms of investment risks, we've identified 1 warning sign with Community West Bancshares and understanding it should be part of your investment process.
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.
