- United States
California BanCorp (NASDAQ:CALB) insiders must be happy they sold stock as market cap drops to US$180m
Insiders seem to have made the most of their holdings by selling US$230k worth of California BanCorp (NASDAQ:CALB) stock at an average sell price of US$22.93 during the past year. The company's market valuation decreased by US$31m after the stock price dropped 15% over the past week, but insiders were spared from painful losses.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for California BanCorp
The Last 12 Months Of Insider Transactions At California BanCorp
The insider, Michele Wirfel, made the biggest insider sale in the last 12 months. That single transaction was for US$173k worth of shares at a price of US$23.05 each. So we know that an insider sold shares at around the present share price of US$21.62. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
California BanCorp insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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 California BanCorp Have Sold Stock Recently
Over the last three months, we've seen a bit of insider selling at California BanCorp. Independent Director Wayne Doiguchi sold just US$13k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the selling simply isn't sufficiently substantial to be of much use as a signal.
Does California BanCorp 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that California BanCorp insiders own 10% of the company, worth about US$18m. 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 California BanCorp Insiders?
While there has not been any insider buying in the last three months, there has been selling. But given the selling was modest, we're not worried. Recent sales exacerbate our caution arising from analysis of California BanCorp insider transactions. But it's good to see that insiders own shares in the company. Of course, the future is what matters most. So if you are interested in California BanCorp, 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.
Valuation is complex, but we're helping make it simple.
Find out whether California BanCorp is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free Analysis
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
California BanCorp operates as the bank holding company for California Bank of Commerce that provides commercial banking services in California.
Flawless balance sheet and undervalued.