Trade Alert: The Lead Independent Director Of Customers Bancorp, Inc. (NYSE:CUBI), Daniel Rothermel, Has Just Spent US$54k Buying 5.1% More Shares

·3 min read

Whilst it may not be a huge deal, we thought it was good to see that the Customers Bancorp, Inc. (NYSE:CUBI) Lead Independent Director, Daniel Rothermel, recently bought US$54k worth of stock, for US$10.72 per share. Although the purchase is not a big one, increasing their shareholding by only 5.1%, it can be interpreted as a good sign.

View our latest analysis for Customers Bancorp

The Last 12 Months Of Insider Transactions At Customers Bancorp

In the last twelve months, the biggest single purchase by an insider was when President & Vice Chairman Samvir Sidhu bought US$125k worth of shares at a price of US$42.10 per share. That means that an insider was happy to buy shares at above the current price of US$20.04. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months insiders purchased 9.47k shares for US$240k. But they sold 1.00k shares for US$43k. In the last twelve months there was more buying than selling by Customers Bancorp insiders. They paid about US$25.41 on average. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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).

Does Customers Bancorp Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Customers Bancorp insiders own 6.9% of the company, worth about US$44m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Customers Bancorp Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Customers Bancorp we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Customers Bancorp. For instance, we've identified 2 warning signs for Customers Bancorp (1 is a bit concerning) you should be aware of.

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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