Yahoo Finance Bullish CVB Financial Insiders Loaded Up On US$11.1m Of Stock
Over the last year, a good number of insiders have significantly increased their holdings in CVB Financial Corp. (NASDAQ:CVBF). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for CVB Financial
The Last 12 Months Of Insider Transactions At CVB Financial
In the last twelve months, the biggest single purchase by an insider was when Independent Vice Chairman of the Board George Borba bought US$5.0m worth of shares at a price of US$19.52 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$17.09). 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. To us, it's very important to consider the price insiders pay for 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 CVB Financial insiders bought shares during the last year, they didn't sell. They paid about US$17.52 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
CVB Financial Insiders Bought Stock Recently
It's good to see that CVB Financial insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought US$1.1m worth of shares. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of CVB Financial
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. CVB Financial insiders own 6.0% of the company, currently worth about US$144m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At CVB Financial Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about CVB Financial. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CVB Financial. In terms of investment risks, we've identified 1 warning sign with CVB Financial and understanding this should be part of your investment process.
But note: CVB Financial may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
