Trade Alert: The Independent Director Of Capitol Federal Financial, Inc. (NASDAQ:CFFN), Morris Huey, Has Just Spent US$81k Buying 4.0% More Shares

Even if it's not a huge purchase, we think it was good to see that Morris Huey, the Independent Director of Capitol Federal Financial, Inc. (NASDAQ:CFFN) recently shelled out US$81k to buy stock, at US$7.87 per share. Although the purchase is not a big one, increasing their shareholding by only 4.0%, it can be interpreted as a good sign.

See our latest analysis for Capitol Federal Financial

The Last 12 Months Of Insider Transactions At Capitol Federal Financial

Notably, that recent purchase by Morris Huey is the biggest insider purchase of Capitol Federal Financial shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$7.99. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months insiders purchased 57.94k shares for US$476k. On the other hand they divested 2.27k shares, for US$19k. In total, Capitol Federal Financial insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume

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).

Does Capitol Federal Financial Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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 Capitol Federal Financial insiders own 2.0% of the company, worth about US$21m. 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 Capitol Federal Financial Tell Us?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Capitol Federal Financial we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 2 warning signs we've spotted with Capitol Federal Financial (including 1 which can't be ignored).

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.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here