Positive Signs As Multiple Insiders Buy Chemung Financial Stock
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 Chemung Financial Corporation (NASDAQ:CHMG), that sends out a positive 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.
View our latest analysis for Chemung Financial
The Last 12 Months Of Insider Transactions At Chemung Financial
Over the last year, we can see that the biggest insider purchase was by Executive VP & Chief Information Officer Loren Cole for US$97k worth of shares, at about US$34.77 per share. We do like to see buying, but this purchase was made at well below the current price of US$42.66. 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.
Happily, we note that in the last year insiders paid US$212k for 5.43k shares. But they sold 1.91k shares for US$89k. In the last twelve months there was more buying than selling by Chemung Financial insiders. They paid about US$39.02 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Chemung Financial 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 Chemung Financial Have Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at Chemung Financial. In total, two insiders bought US$126k worth of shares in that time. On the other hand, Executive Vice President of Wealth Management Group at Chemung Canal Trust Company Thomas Wirth netted US$37k by selling. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Does Chemung Financial 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. Chemung Financial insiders own about US$40m worth of shares. That equates to 20% 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.
So What Does This Data Suggest About Chemung Financial Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Chemung Financial insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Chemung Financial. Every company has risks, and we've spotted 1 warning sign for Chemung Financial you should know about.
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, 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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