Those following along with Cullen/Frost Bankers, Inc. (NYSE:CFR) will no doubt be intrigued by the recent purchase of shares by insider Chris Avery, who spent a stonking US$858k on stock at an average price of US$90.33. That purchase boosted their holding by 190%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
The Last 12 Months Of Insider Transactions At Cullen/Frost Bankers
Over the last year, we can see that the biggest insider purchase was by Independent Director Carlos Alvarez for US$2.6m worth of shares, at about US$85.08 per share. That implies that an insider found the current price of US$93.37 per share to be enticing. 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. If someone buys shares at well below current prices, it’s a good sign on balance, but keep in mind they may no longer see value. In this case we’re pleased to report that the insider purchases were made at close to current prices.
While Cullen/Frost Bankers insiders bought shares last year, they didn’t sell. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Cullen/Frost Bankers 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.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Cullen/Frost Bankers insiders own 4.2% of the company, currently worth about US$244m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Cullen/Frost Bankers Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Cullen/Frost Bankers. Nice! Of course, the future is what matters most. So if you are interested in Cullen/Frost Bankers, you should check out this free report on analyst forecasts for the company.
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.
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