Stock Analysis

Have Capital Bancorp, Inc. (NASDAQ:CBNK) Insiders Been Selling Their Stock?

  •  Updated
NasdaqGS:CBNK
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We'd be surprised if Capital Bancorp, Inc. (NASDAQ:CBNK) shareholders haven't noticed that the Independent Director, Stephen Ashman, recently sold US$188k worth of stock at US$23.93 per share. However, the silver lining is that the sale only reduced their total holding by 1.6%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for Capital Bancorp

Capital Bancorp Insider Transactions Over The Last Year

Notably, that recent sale by Independent Director Stephen Ashman was not the only time they sold Capital Bancorp shares this year. Earlier in the year, they fetched US$18.88 per share in a -US$883k sale. That means that an insider was selling shares at slightly below the current price (US$23.50). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 7.1%of Stephen Ashman's holding.

Insiders in Capital Bancorp didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NasdaqGS:CBNK Insider Trading Volume August 26th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Capital Bancorp insiders own 41% of the company, worth about US$133m. 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 Capital Bancorp Tell Us?

Insiders haven't bought Capital Bancorp stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Capital Bancorp is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Capital Bancorp has 2 warning signs (1 is a bit unpleasant!) that deserve your attention before going any further with your analysis.

But note: Capital Bancorp 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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What are the risks and opportunities for Capital Bancorp?

Capital Bancorp, Inc. operates as the bank holding company for Capital Bank, N.A.

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Rewards

  • Trading at 64.8% below our estimate of its fair value

  • Earnings grew by 8.8% over the past year

Risks

No risks detected for CBNK from our risks checks.

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Share Price

Market Cap

1Y Return

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About NasdaqGS:CBNK

Capital Bancorp

Capital Bancorp, Inc. operates as the bank holding company for Capital Bank, N.A.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation6
Future Growth0
Past Performance5
Financial Health6
Dividends2

Read more about these checks in the individual report sections or in our analysis model.

Very undervalued with flawless balance sheet.