Even if it’s not a huge purchase, we think it was good to see that Thomas Oakley, the Director of CenterState Bank Corporation (NASDAQ:CSFL) recently shelled out US$82k to buy stock, at US$23.03 per share. That might not be a big purchase but it only increased their holding by 1.8%, and could be interpreted as a good sign.
CenterState Bank Insider Transactions Over The Last Year
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 we know that an insider sold shares at around the present share price of US$23.06. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. 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).
Over the last year, we can see that insiders have bought 18800 shares worth US$428k. But insiders sold 22500 shares worth US$621k. Over the last year we saw more insider selling of CenterState Bank shares, than buying. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Does CenterState Bank Boast High Insider Ownership?
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. CenterState Bank insiders own about US$78m worth of shares. That equates to 2.6% 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.
So What Does This Data Suggest About CenterState Bank Insiders?
It is good to see the recent insider purchase. But we can’t say the same for the transactions over the last 12 months. The more recent transactions are a positive, but CenterState Bank insiders haven’t shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. In short they are likely aligned with shareholders. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: CenterState Bank 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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