Have Capital Bancorp Insiders Been Selling Stock?

Investors may wish to note that an insider of Capital Bancorp, Inc., Dominic Canuso, recently netted US$95k from selling stock, receiving an average price of US$27.95. While that isn't a lot of money, it was a substantial 70% of their holding, so certainly isn't a good sign.

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Capital Bancorp Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Director, Randall Levitt, for US$1.4m worth of shares, at about US$34.41 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$27.78. So it is hard to draw any strong conclusion from it.

Happily, we note that in the last year insiders paid US$128k for 4.32k shares. On the other hand they divested 57.90k shares, for US$1.9m. In total, Capital Bancorp insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Capital Bancorp

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Capital Bancorp Boast High Insider Ownership?

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. It's great to see that Capital Bancorp insiders own 32% of the company, worth about US$148m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Capital Bancorp Insiders?

Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Capital Bancorp makes money, and is growing profits. 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 found 1 warning sign for Capital Bancorp that deserve your attention before buying any shares.

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 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.