Don't Ignore The Insider Selling In CF Bankshares

We'd be surprised if CF Bankshares Inc. (NASDAQ:CFBK) shareholders haven't noticed that the President, Timothy O’Dell, recently sold US$232k worth of stock at US$25.36 per share. On the bright side, that sale was only 2.9% of their holding, so we doubt it's very meaningful, on its own.

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The Last 12 Months Of Insider Transactions At CF Bankshares

Notably, that recent sale by President Timothy O’Dell was not the only time they sold CF Bankshares shares this year. They previously made an even bigger sale of -US$607k worth of shares at a price of US$27.28 per share. So what is clear is that an insider saw fit to sell at around the current price of US$24.80. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Happily, we note that in the last year insiders paid US$24k for 1.10k shares. But they sold 32.46k shares for US$854k. In total, CF Bankshares 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. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for CF Bankshares

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of CF Bankshares

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 17% of CF Bankshares shares, worth about US$27m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At CF Bankshares Tell Us?

An insider sold CF Bankshares shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, CF Bankshares makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CF Bankshares. Case in point: We've spotted 1 warning sign for CF Bankshares you should be aware of.

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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.