Anyone interested in Coastal Financial Corporation (NASDAQ:CCB) should probably be aware that the Independent Vice Chairman, Andrew Skotdal, recently divested US$419k worth of shares in the company, at an average price of US$19.80 each. However, the silver lining is that the sale only reduced their total holding by 4.1%, so we're hesitant to read anything much into it, on its own.
Coastal Financial Insider Transactions Over The Last Year
Notably, that recent sale by Andrew Skotdal is the biggest insider sale of Coastal Financial shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$19.73. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Happily, we note that in the last year insiders paid US$310k for 21.48k shares. On the other hand they divested 23.92k shares, for US$473k. Andrew Skotdal sold a total of 23.92k shares over the year at an average price of US$19.79. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Coastal Financial better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of Coastal Financial
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Coastal Financial insiders own about US$52m worth of shares. That equates to 22% 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 Coastal Financial Insiders?
The insider sales have outweighed the insider buying, at Coastal Financial, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Coastal Financial is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Coastal Financial. Every company has risks, and we've spotted 2 warning signs for Coastal Financial you should know about.
Of course Coastal Financial 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, but not derivative transactions.
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