Yahoo Finance Several Insiders Invested In Community West Bancshares Flagging Positive News
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Community West Bancshares (NASDAQ:CWBC), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Community West Bancshares
The Last 12 Months Of Insider Transactions At Community West Bancshares
The Executive VP & Market Executive of Central Valley Community Bank, Anthony Ramos, made the biggest insider sale in the last 12 months. That single transaction was for US$251k worth of shares at a price of US$18.71 each. So what is clear is that an insider saw fit to sell at around the current price of US$18.15. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. The only individual insider seller over the last year was Anthony Ramos. Notably Anthony Ramos was also the biggest buyer, having purchased US$280k worth of shares.
In the last twelve months insiders purchased 16.26k shares for US$280k. On the other hand they divested 13.40k shares, for US$251k. In the last twelve months there was more buying than selling by Community West Bancshares insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Community West Bancshares Insiders Bought Stock Recently
Over the last quarter, Community West Bancshares insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$280k worth of shares. This could be interpreted as suggesting a positive outlook.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Community West Bancshares insiders own about US$30m worth of shares. That equates to 8.7% of the company. 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 Community West Bancshares Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Insiders likely see value in Community West Bancshares shares, given these transactions (along with notable insider ownership of the company). 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 Community West Bancshares (including 1 which is a bit unpleasant).
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 of direct interests only, but not derivative transactions or indirect interests.
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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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