Insider Stock Buying Reaches CA$5.68m On Canadian Imperial Bank of Commerce

Multiple insiders secured a larger position in Canadian Imperial Bank of Commerce (TSE:CM) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Canadian Imperial Bank of Commerce

The Last 12 Months Of Insider Transactions At Canadian Imperial Bank of Commerce

Over the last year, we can see that the biggest insider purchase was by President Victor Dodig for CA$3.0m worth of shares, at about CA$58.08 per share. That means that an insider was happy to buy shares at around the current price of CA$63.08. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Canadian Imperial Bank of Commerce share holders is that insiders were buying at near the current price.

Canadian Imperial Bank of Commerce insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insiders At Canadian Imperial Bank of Commerce Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Canadian Imperial Bank of Commerce. Independent Director Ammar Al-Joundi spent CA$509k on stock, and there wasn't any selling. This could be interpreted as suggesting a positive outlook.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Canadian Imperial Bank of Commerce insiders own 0.05% of the company, worth about CA$29m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Canadian Imperial Bank of Commerce Insiders?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Canadian Imperial Bank of Commerce we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 1 warning sign for Canadian Imperial Bank of Commerce you should be aware of.

But note: Canadian Imperial Bank of Commerce 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.