Yahoo Finance A number of insiders bought Capitol Federal Financial, Inc. (NASDAQ:CFFN) stock last year, which is great news for shareholders
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Capitol Federal Financial, Inc. (NASDAQ:CFFN), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Capitol Federal Financial
Capitol Federal Financial Insider Transactions Over The Last Year
Notably, that recent purchase by Rick Jackson is the biggest insider purchase of Capitol Federal Financial shares that we've seen in the last year. That implies that an insider found the current price of US$9.20 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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 14.59k shares for US$146k. On the other hand they divested 2.69k shares, for US$33k. In total, Capitol Federal Financial insiders bought more than they sold over the last year. The average buy price was around US$10.01. 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Capitol Federal Financial is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Capitol Federal Financial Insiders Bought Stock Recently
It's good to see that Capitol Federal Financial insiders have made notable investments in the company's shares. Chief Lending Officer Rick Jackson spent US$63k on stock, and there wasn't any selling. This makes one think the business has some good points.
Insider Ownership Of Capitol Federal Financial
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 1.9% of Capitol Federal Financial shares, worth about US$24m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Capitol Federal Financial Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Capitol Federal Financial we think they are probably pretty confident of a bright future. 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. For example, Capitol Federal Financial has 2 warning signs (and 1 which is potentially serious) we think you should know about.
Of course Capitol Federal Financial 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.
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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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