Several Insiders Invested In Colony Bankcorp Flagging Positive News \
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Colony Bankcorp, Inc.'s (NASDAQ:CBAN) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Colony Bankcorp
Colony Bankcorp Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Executive VP & Chief of Staff Kimberly Dockery bought US$53k worth of shares at a price of US$13.33 per share. That means that an insider was happy to buy shares at above the current price of US$9.30. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Colony Bankcorp insiders bought shares during the last year, they didn't sell. The average buy price was around US$11.58. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders At Colony Bankcorp Have Bought Stock Recently
Over the last quarter, Colony Bankcorp insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$212k worth of shares. This is a positive in our book as it implies some confidence.
Insider Ownership
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 appears that Colony Bankcorp insiders own 7.4% of the company, worth about US$12m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Colony Bankcorp Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Colony Bankcorp shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 1 warning sign for Colony Bankcorp that deserve your attention before buying any shares.
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.
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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