Positive Signs As Multiple Insiders Buy CF Bankshares Stock
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of CF Bankshares Inc. (NASDAQ:CFBK), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for CF Bankshares
The Last 12 Months Of Insider Transactions At CF Bankshares
The President Timothy O’Dell made the biggest insider purchase in the last 12 months. That single transaction was for US$51k worth of shares at a price of US$17.08 each. We do like to see buying, but this purchase was made at well below the current price of US$21.85. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
CF Bankshares insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Insider Ownership Of CF Bankshares
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. CF Bankshares insiders own about US$20m worth of shares. That equates to 14% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At CF Bankshares Tell Us?
It doesn't really mean much that no insider has traded CF Bankshares shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think CF Bankshares insiders are doubting the company, and they do own shares. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
But note: CF Bankshares 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.
