Even if it's not a huge purchase, we think it was good to see that Anthony Ramos, the Executive VP & Market Executive of Central Valley Community Bancorp (NASDAQ:CVCY) recently shelled out US$64k to buy stock, at US$21.26 per share. That purchase might not be huge but it did increase their holding by 34%.
View our latest analysis for Central Valley Community Bancorp
Central Valley Community Bancorp Insider Transactions Over The Last Year
Notably, that recent purchase by Anthony Ramos is the biggest insider purchase of Central Valley Community Bancorp shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$21.07. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing 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.
In the last twelve months insiders purchased 4.63k shares for US$92k. On the other hand they divested 4.00k shares, for US$81k. In total, Central Valley Community Bancorp insiders bought more than they sold over the last year. 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!
Central Valley Community Bancorp 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.
Insider Ownership of Central Valley Community Bancorp
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Central Valley Community Bancorp insiders own 17% of the company, worth about US$43m. 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 Central Valley Community Bancorp Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Central Valley Community Bancorp 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. Every company has risks, and we've spotted 2 warning signs for Central Valley Community Bancorp (of which 1 is potentially serious!) you should know about.