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. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 24%.
View our latest analysis for CNB Financial
The Last 12 Months Of Insider Transactions At CNB Financial
Notably, that recent purchase by Nicholas Scott is the biggest insider purchase of CNB Financial shares that we’ve seen in the last year. That means that even when the share price was higher than US$22.59 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
NasdaqGS:CCNE Insider Trading Volume June 19th 2021
CNB Financial is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does CNB Financial Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that CNB Financial insiders own 4.9% of the company, worth about US$19m. 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 Do The CNB Financial Insider Transactions Indicate?
It’s certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest CNB Financial insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. While conducting our analysis, we found that CNB Financial has 2 warning signs and it would be unwise to ignore them.
But note: CNB 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, but not derivative transactions.
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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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