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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of ChoiceOne Financial Services, Inc. (NASDAQ:COFS), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for ChoiceOne Financial Services
ChoiceOne Financial Services Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Eric Burrough for US$400k worth of shares, at about US$25.00 per share. We do like to see buying, but this purchase was made at well below the current price of US$32.93. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months ChoiceOne Financial Services insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of ChoiceOne Financial Services
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. ChoiceOne Financial Services insiders own about US$31m worth of shares. That equates to 10% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At ChoiceOne Financial Services Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in ChoiceOne Financial Services and their transactions don't cause us concern. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that ChoiceOne Financial Services has 1 warning sign and it would be unwise to ignore this.