Multiple insiders bought Civista Bancshares, Inc. (NASDAQ:CIVB) stock earlier this year, a positive sign for shareholders
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Civista Bancshares, Inc. (NASDAQ:CIVB), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Civista Bancshares
Civista Bancshares Insider Transactions Over The Last Year
The Independent Director, Allen Nickles, made the biggest insider sale in the last 12 months. That single transaction was for US$228k worth of shares at a price of US$22.75 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$16.04). So it is hard to draw any strong conclusion from it. Allen Nickles was the only individual insider to sell over the last year.
In the last twelve months insiders purchased 12.24k shares for US$240k. But insiders sold 10.00k shares worth US$228k. Overall, Civista Bancshares insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Civista Bancshares 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.
Insiders At Civista Bancshares Have Bought Stock Recently
It's good to see that Civista Bancshares insiders have made notable investments in the company's shares. Overall, three insiders shelled out US$179k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Does Civista Bancshares Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 5.3% of Civista Bancshares shares, worth about US$13m. 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 Civista Bancshares Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Civista Bancshares we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Civista Bancshares. Every company has risks, and we've spotted 1 warning sign for Civista Bancshares you should know about.
But note: Civista Bancshares 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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