We'd be surprised if Community Bank System, Inc. (NYSE:CBU) shareholders haven't noticed that the Independent Director, Eric Stickels, recently sold US$204k worth of stock at US$68.12 per share. On the bright side, that sale was only 6.1% of their holding, so we doubt it's very meaningful, on its own.
The Last 12 Months Of Insider Transactions At Community Bank System
The President, Mark Tryniski, made the biggest insider sale in the last 12 months. That single transaction was for US$706k worth of shares at a price of US$62.88 each. That means that even when the share price was below the current price of US$68.63, 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 7.7% of Mark Tryniski's stake.
Over the last year, we note insiders sold 25894 shares worth US$1.6m. Insiders in Community Bank System didn't buy any shares in the last year. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Community Bank System Boast High Insider Ownership?
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. Community Bank System insiders own about US$53m worth of shares. That equates to 1.5% of the company. 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 Do The Community Bank System Insider Transactions Indicate?
An insider sold Community Bank System shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Community Bank System.
But note: Community Bank System 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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