Investors who take an interest in Century Bancorp, Inc. (NASDAQ:CNBK.A) should definitely note that insider James Filler recently paid US$88.24 per share to buy US$386k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 0.6%.
The Last 12 Months Of Insider Transactions At Century Bancorp
In fact, the recent purchase by insider James Filler was not their only acquisition of Century Bancorp shares this year. Earlier in the year, they paid US$85.42 per share in a US$433k purchase. That means that an insider was happy to buy shares at around the current price of US$86.00. Of course they may have changed their mind. But this suggests they are optimistic. 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. Happily, the Century Bancorp insiders decided to buy shares at close to current prices.
In the last twelve months Century Bancorp insiders were buying shares, but not selling. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 17% of Century Bancorp shares, worth about US$81m. 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 Century Bancorp Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Insiders likely see value in Century Bancorp shares, given these transactions (along with notable insider ownership of the company). Along with insider transactions, I recommend checking if Century Bancorp is growing revenue. This free chart of historic revenue and earnings should make that easy.
Of course Century Bancorp 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.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.