Anyone interested in CenterState Bank Corporation (NASDAQ:CSFL) should probably be aware that the Independent Director, James Bingham, recently divested US$162k worth of shares in the company, at an average price of US$26.55 each. However, the silver lining is that the sale only reduced their total holding by 4.9%, so we're hesitant to read anything much into it, on its own.
CenterState Bank Insider Transactions Over The Last Year
The Independent Director, George Nunez, made the biggest insider sale in the last 12 months. That single transaction was for US$392k worth of shares at a price of US$26.16 each. That means that even when the share price was slightly below the current price of US$26.25, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was 52% of George Nunez's holding.
In the last twelve months insiders purchased 18800 shares for US$428k. But insiders sold 21110 shares worth US$555k. All up, insiders sold more shares in CenterState Bank than they bought, over the last year. You can see the insider transactions (by 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!
I will like CenterState Bank better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.4% of CenterState Bank shares, worth about US$79m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About CenterState Bank Insiders?
The stark truth for CenterState Bank is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that CenterState Bank is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd think twice before buying! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for CenterState Bank.
Of course CenterState Bank 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.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.