Positive Signs As Multiple Insiders Buy Colony Bankcorp Stock
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Colony Bankcorp, Inc.'s (NASDAQ:CBAN) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Colony Bankcorp
The Last 12 Months Of Insider Transactions At Colony Bankcorp
In fact, the recent sale by Harold Wyatt was the biggest sale of Colony Bankcorp shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$10.50. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Happily, we note that in the last year insiders paid US$275k for 25.43k shares. But they sold 11.00k shares for US$117k. Overall, Colony Bankcorp insiders were net buyers during the last year. Their average price was about US$10.80. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and 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!
Colony Bankcorp is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Colony Bankcorp Insiders Are Selling The Stock
There was substantially more insider selling, than buying, of Colony Bankcorp shares over the last three months. In that time, Independent Director Harold Wyatt dumped US$117k worth of shares. Meanwhile Independent Director Matthew Reed bought US$1.4k worth. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.
Does Colony Bankcorp Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Colony Bankcorp insiders own 7.3% of the company, worth about US$14m. 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 Does This Data Suggest About Colony Bankcorp Insiders?
The insider sales have outweighed the insider buying, at Colony Bankcorp, in the last three months. But we take heart from prior transactions. And insiders do own shares. So we're not overly bothered by recent selling. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Colony Bankcorp.
But note: Colony Bankcorp 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 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.
