Pleasing Signs As A Number Of Insiders Buy Cambridge Bancorp Stock
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Cambridge Bancorp's (NASDAQ:CATC) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Cambridge Bancorp
The Last 12 Months Of Insider Transactions At Cambridge Bancorp
In the last twelve months, the biggest single purchase by an insider was when Chairman Denis Sheahan bought US$68k worth of shares at a price of US$68.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$62.11). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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.
Cambridge Bancorp insiders may have bought shares in the last year, but they didn't sell any. They paid about US$54.63 on average. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!
Cambridge Bancorp is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Cambridge Bancorp Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Cambridge Bancorp insiders own about US$26m worth of shares. That equates to 5.4% of the company. 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 Cambridge Bancorp Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Cambridge Bancorp shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Cambridge Bancorp insiders are doubting the company, and they do own shares. Of course, the future is what matters most. So if you are interested in Cambridge Bancorp, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
