Independent Director Thomas Lane Just Bought 17% More Shares In Coastal Financial Corporation (NASDAQ:CCB)
Investors who take an interest in Coastal Financial Corporation (NASDAQ:CCB) should definitely note that the Independent Director, Thomas Lane, recently paid US$13.93 per share to buy US$237k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 17%.
See our latest analysis for Coastal Financial
Coastal Financial Insider Transactions Over The Last Year
Notably, that recent purchase by Thomas Lane is the biggest insider purchase of Coastal Financial shares that we've seen in the last year. That implies that an insider found the current price of US$14.41 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Coastal Financial insiders decided to buy shares at close to current prices.
In the last twelve months Coastal Financial insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and 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!
Coastal Financial is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company 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 22% of Coastal Financial shares, worth about US$38m. 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 Coastal Financial Insiders?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Coastal 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: Coastal 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.
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. 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.
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