Read This Before Selling CB Financial Services, Inc. (NASDAQ:CBFV) Shares
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell CB Financial Services, Inc. (NASDAQ:CBFV), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don’t think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
View our latest analysis for CB Financial Services
CB Financial Services Insider Transactions Over The Last Year
Jonathan Bedway made the biggest insider purchase in the last 12 months. That single transaction was for US$200k worth of shares at a price of US$34.75 each. That means that an insider was happy to buy shares at above the current price. Their view may have changed since then, but at least it shows they felt optimistic at the time. That purchase may suggest an expectation of positive returns over the long term.
Happily, we note that in the last year insiders paid US$457k for 14.76k shares. But they sold 6.50k for US$202k. In the last twelve months there was more buying than selling by CB Financial Services insiders. The average buy price was around US$30.96. These transactions suggest that insiders have considered the current price of US$25.85 attractive. You can see a visual depiction of insider transactions 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!
CB Financial Services 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 CB Financial Services Have Bought Stock Recently
It’s good to see that CB Financial Services insiders have made notable investments in the company’s shares. Not only was there no selling that we can see, but they collectively bought US$160k worth of shares. This is a positive in our book as it implies some confidence.
Insider Ownership of CB Financial Services
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It’s great to see that CB Financial Services insiders own 8.0% of the company, worth about US$11m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About CB Financial Services Insiders?
It’s certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of CB Financial Services we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in CB Financial Services, you should check out this free report on analyst forecasts for the company.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
