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Don't Ignore The Fact That This Insider Just Sold Some Shares In Central Pacific Financial Corp. (NYSE:CPF)

Simply Wall St

Investors may wish to note that the Executive Vice President of Commercial Markets of Central Pacific Financial Corp., Arnold Martines, recently netted US$50k from selling stock, receiving an average price of US$29.15. It wasn't a huge sale, but it did reduce their holding by 12%. This does not instill confidence.

See our latest analysis for Central Pacific Financial

Central Pacific Financial Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chairman Emeritus, John Dean, sold US$1.1m worth of shares at a price of US$30.78 per share. That means that an insider was selling shares at around the current price of US$29.57. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Happily, we note that in the last year insiders paid US$924k for 31777 shares. On the other hand they divested 68730.26 shares, for US$2.1m. All up, insiders sold more shares in Central Pacific Financial than they bought, over the last year. You can see a visual depiction of insider transactions (by individuals) 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!

NYSE:CPF Recent Insider Trading, November 7th 2019

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Central Pacific Financial

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Central Pacific Financial insiders own 2.5% of the company, worth about US$21m. 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 Does This Data Suggest About Central Pacific Financial Insiders?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. But since Central Pacific Financial is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Central Pacific Financial.

Of course Central Pacific Financial may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.