Whilst it may not be a huge deal, we thought it was good to see that the Columbia Financial, Inc. (NASDAQ:CLBK) Independent Director, Elizabeth Randall, recently bought US$99k worth of stock, for US$16.59 per share. However, we do note that it only increased their holding by 7.8%, and it wasn't a huge purchase by absolute value, either.
Columbia Financial Insider Transactions Over The Last Year
Independent Director Robert Van Dyk made the biggest insider purchase in the last 12 months. That single transaction was for US$220k worth of shares at a price of US$14.81 each. That means that an insider was happy to buy shares at around the current price of US$16.87. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Columbia Financial share holders is that insiders were buying at near the current price.
Columbia Financial insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Columbia Financial Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Columbia Financial insiders own 1.8% of the company, worth about US$33m. 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 Columbia Financial Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Columbia Financial insiders are well aligned, and that they may think the share price is too low. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Columbia Financial may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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