Insider Buying: The CNB Financial Corporation (NASDAQ:CCNE) Independent Director Just Bought 24% More Shares
CNB Financial Corporation (NASDAQ:CCNE) shareholders (or potential shareholders) will be happy to see that the Independent Director, Nicholas Scott, recently bought a whopping US$112m worth of stock, at a price of US$24,307. Not only is that a big swing, but it increased their holding size by 24%, which is definitely great to see.
See our latest analysis for CNB Financial
CNB Financial Insider Transactions Over The Last Year
In fact, the recent purchase by Nicholas Scott was the biggest purchase of CNB Financial shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$22.59). 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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While CNB Financial insiders bought shares during the last year, they didn't sell. Their average price was about US$5,230. 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!
CNB Financial is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that CNB Financial insiders own 4.9% of the company, worth about US$19m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At CNB Financial Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of CNB Financial we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - CNB Financial has 2 warning signs we think you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
This article by Simply Wall St is general in nature. 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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