Usually, when one insider buys shares, it may not be a monumental event. But when multiple insiders buy shares, Community West Bancshares (NASDAQ:CWBC) sends a positive message to the company’s shareholders.
While insider trading is not the most important aspect of long-term investing, it would be foolish to ignore it completely.
Check out our latest analysis for Community West Bank Shares
Insider transactions at Community West Bancshares in the last 12 months
Anthony Ramos, Executive Vice President and Market Officer at Central Valley Community Bank, made the largest insider sale in the past 12 months. The transaction sold $251K worth of shares at $18.71 per share. So it’s clear that an insider thought it was appropriate to sell around the current price of $18.15. While insider selling is usually a bad idea, it’s more of a concern when the sale occurs at a lower price. Since this sale occurred around the current price, it’s not a huge concern, but it’s never a good sign. The only other insider seller in the past year was Anthony Ramos. Notably, Anthony Ramos was also the largest buyer, purchasing $280K worth of shares.
In the last 12 months, insiders have bought 16,260 shares for $280,000, while selling 13,400 shares for $2.51 million. Community West Bancshares insider purchases have outweighed sales in the last 12 months. You can see insider transactions (by companies and individuals) over the past year in the chart below: You can click on the chart below to see the exact details of each insider transaction.
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Community West Bank Shares insiders have recently bought shares
In the last quarter, Community West Bancshares insiders spent a fair amount on the stock – not only did we not see any sales, but in total, insiders bought US$280,000 worth of shares, which we could interpret as suggesting optimistic prospects.
Insider Ownership
Many investors like to check how much of a company’s shares are owned by insiders, and we consider it a good sign when insiders own a significant number of shares in a company. Community West Bancshares insiders own about US$30m worth of shares, which represents 8.7% of the company. Certainly, we’ve seen higher insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and other shareholders.
What does Community West Bancshares’ insider trading tell us?
Recent insider purchases are certainly a positive thing, and longer-term insider transactions also give us confidence. Given these transactions (as well as notable insider ownership in the company), it’s highly likely that insiders see value in Community West Bank Shares shares. So while it’s useful to know what insiders are doing in terms of buying and selling, it’s also useful to know the risks facing a particular company. To do that, Two Warning Signs I found them at Community West Bancshares (including one slightly unpleasant one).
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For the purposes of this article, insiders are individuals who report their transactions to the relevant regulatory body. Currently, we count only open market transactions and private dispositions of direct interests, not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We use only unbiased methodologies to provide commentary based on historical data and analyst forecasts, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks, and does not take into account your objectives, or your financial situation. We seek to provide long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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