Insider Buying: The Central Valley Community Bancorp (NASDAQ:CVCY) Independent Director Just Bought 1.7% More Shares
Potential Central Valley Community Bancorp (NASDAQ:CVCY) shareholders may wish to note that the Independent Director, Louis McMurray, recently bought US$154k worth of stock, paying US$15.43 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.7%.
View our latest analysis for Central Valley Community Bancorp
Central Valley Community Bancorp Insider Transactions Over The Last Year
In fact, the recent purchase by Louis McMurray was the biggest purchase of Central Valley Community Bancorp shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of US$13.50. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Central Valley Community Bancorp insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Central Valley Community Bancorp 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.
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 Central Valley Community Bancorp insiders own 16% of the company, worth about US$26m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Central Valley Community Bancorp Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Central Valley Community Bancorp insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, Central Valley Community Bancorp has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.
But note: Central Valley Community Bancorp 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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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.
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