Quite a few insiders invested in Central Valley Community Bancorp (NASDAQ:CVCY) last year which is positive news for shareholders
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Central Valley Community Bancorp's (NASDAQ:CVCY) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Central Valley Community Bancorp
Central Valley Community Bancorp Insider Transactions Over The Last Year
The Executive VP & Market Executive Anthony Ramos made the biggest insider purchase in the last 12 months. That single transaction was for US$64k worth of shares at a price of US$21.30 each. That means that an insider was happy to buy shares at above the current price of US$17.20. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 13.39k shares worth US$261k. But insiders sold 2.00k shares worth US$42k. Overall, Central Valley Community Bancorp insiders were net buyers during the last year. 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!
Central Valley Community Bancorp 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.
Central Valley Community Bancorp Insiders Bought Stock Recently
Over the last quarter, Central Valley Community Bancorp insiders have spent a meaningful amount on shares. Overall, five insiders shelled out US$171k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Does Central Valley Community Bancorp 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Central Valley Community Bancorp insiders own about US$32m worth of shares. That equates to 16% 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 Central Valley Community Bancorp 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 Central Valley Community Bancorp shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Central Valley Community Bancorp has 2 warning signs and it would be unwise to ignore them.
Of course Central Valley Community Bancorp may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
