Stock Analysis

Insider Buying: The Capitol Federal Financial, Inc. (NASDAQ:CFFN) Executive VP & Chief Corporate Services Officer Just Bought 38% More Shares

NasdaqGS:CFFN
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Investors who take an interest in Capitol Federal Financial, Inc. (NASDAQ:CFFN) should definitely note that the Executive VP & Chief Corporate Services Officer, Anthony Barry, recently paid US$12.63 per share to buy US$126k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 38%.

Check out our latest analysis for Capitol Federal Financial

The Last 12 Months Of Insider Transactions At Capitol Federal Financial

In fact, the recent purchase by Anthony Barry was the biggest purchase of Capitol Federal Financial shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$12.65. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Capitol Federal Financial share holders is that insiders were buying at near the current price.

Over the last year, we can see that insiders have bought 27.65k shares worth US$304k. On the other hand they divested 2.28k shares, for US$26k. Overall, Capitol Federal Financial insiders were net buyers during the last year. Their average price was about US$11.00. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. 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!

insider-trading-volume
NasdaqGS:CFFN Insider Trading Volume February 6th 2021

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Capitol Federal Financial Boast High 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. It appears that Capitol Federal Financial insiders own 1.9% of the company, worth about US$33m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Capitol Federal Financial Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Insiders likely see value in Capitol Federal Financial shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 1 warning sign for Capitol Federal Financial and we suggest you have a look.

But note: Capitol Federal Financial 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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This article by Simply Wall St is general in nature. 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.
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