Independent Director of Capital Bancorp Picks Up 17% More Stock

Even if it's not a huge purchase, we think it was good to see that Mary Scully, the Independent Director of Capital Bancorp, Inc. (NASDAQ:CBNK) recently shelled out US$50k to buy stock, at US$25.14 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 17%.

Check out our latest analysis for Capital Bancorp

The Last 12 Months Of Insider Transactions At Capital Bancorp

Notably, that recent purchase by Independent Director Mary Scully was not the only time they bought Capital Bancorp shares this year. They previously made an even bigger purchase of US$108k worth of shares at a price of US$19.68 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$24.32. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Mary Scully purchased 7.50k shares over the year. The average price per share was US$21.13. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Capital Bancorp is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Capital Bancorp insiders own about US$118m worth of shares (which is 35% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Capital Bancorp Tell Us?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Capital Bancorp insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! 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. In terms of investment risks, we've identified 1 warning sign with Capital Bancorp and understanding it should be part of your investment process.

Of course Capital Bancorp may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com