Quite a few insiders invested in Cass Information Systems, Inc. (NASDAQ:CASS) last year which is positive news for shareholders
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 Cass Information Systems, Inc. (NASDAQ:CASS), 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 do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Cass Information Systems
Cass Information Systems Insider Transactions Over The Last Year
Notably, that recent purchase by Martin Resch is the biggest insider purchase of Cass Information Systems shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$36.18). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Cass Information Systems 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. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Cass Information Systems Insiders Bought Stock Recently
Over the last quarter, Cass Information Systems insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$92k worth of shares. This makes one think the business has some good points.
Does Cass Information Systems Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Cass Information Systems insiders own about US$14m worth of shares. That equates to 2.9% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Cass Information Systems Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Insiders likely see value in Cass Information Systems shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in Cass Information Systems, you should check out this free report on analyst forecasts for the company.
But note: Cass Information Systems 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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