We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in Colony Bankcorp, Inc. (NASDAQ:CBAN).
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 on the market. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Colony Bankcorp Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by President T. Fountain for US$174k worth of shares, at about US$17.39 per share. So it’s clear an insider wanted to buy, even at a higher price. 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. It’s not at all bad to see insiders buy shares at or above current prices.
In the last twelve months insiders purchased 17.53k shares for US$302k. But insiders sold 2.50k shares worth US$43k. In total, Colony Bankcorp insiders bought more than they sold over the last year. Their average price was about US$17.21. I’d consider this a positive as it suggests insiders see value at around the current price, which is US$17.00. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Are Colony Bankcorp Insiders Buying Or Selling?
There was only a small bit of insider buying, worth US$485, in the last three months. Overall, we don’t think these recent trades are particularly informative, one way or the other.
Insider Ownership of Colony Bankcorp
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Colony Bankcorp insiders own about US$19m worth of shares. That equates to 13% of the company. 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 Colony Bankcorp Insiders?
We note a that there has been a tad more insider buying than selling, recently. But overall the difference isn’t worth writing home about. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Colony Bankcorp and we see no evidence to suggest they are worried about the future. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free .
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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