We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in CenterState Bank Corporation (NASDAQ:CSFL).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.
View our latest analysis for CenterState Bank
The Last 12 Months Of Insider Transactions At CenterState Bank
Over the last year, we can see that the biggest insider sale was by the Director, George Nunez, for US$392k worth of shares, at about US$26.16 per share. So what is clear is that an insider saw fit to sell at around the current price of US$24.09. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). George Nunez was the only individual insider to sell shares in the last twelve months.
Happily, we note that in the last year insiders paid US$428k for 18800 shares. But insiders sold 15000 shares worth US$392k. In the last twelve months there was more buying than selling by CenterState Bank insiders. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
CenterState Bank 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.
Insiders at CenterState Bank Have Bought Stock Recently
It's good to see that CenterState Bank insiders have made notable investments in the company's shares. We can see that Director Thomas Oakley paid US$82k for shares in the company. No-one sold. That shows some optimism about the company's future.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. CenterState Bank insiders own about US$82m worth of shares. That equates to 2.7% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.