The Chief Lending Officer of Capitol Federal Financial, Inc. (NASDAQ:CFFN), Rick Jackson, Just Bought 4.8% More Shares

Even if it's not a huge purchase, we think it was good to see that Rick Jackson, the Chief Lending Officer of Capitol Federal Financial, Inc. (NASDAQ:CFFN) recently shelled out US$63k to buy stock, at US$8.98 per share. Although the purchase is not a big one, increasing their shareholding by only 4.8%, it can be interpreted as a good sign.

If you're not interested in researching CFFN's insider transactions, we have a free list of interesting investing ideas to potentially inspire your next investment!

The Last 12 Months Of Insider Transactions At Capitol Federal Financial

In fact, the recent purchase by Rick Jackson was the biggest purchase of Capitol Federal Financial shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$9.20 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Capitol Federal Financial insiders decided to buy shares at close to current prices.

Happily, we note that in the last year insiders paid US$146k for 14.59k shares. But insiders sold 2.69k shares worth US$33k. Overall, Capitol Federal Financial insiders were net buyers during the last year. The average buy price was around US$10.01. I'd consider this a positive as it suggests insiders see value at around the current price. 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!

Capitol Federal Financial is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Capitol Federal Financial Boast High Insider Ownership?

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. Capitol Federal Financial insiders own about US$24m worth of shares. That equates to 1.9% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Capitol Federal Financial Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Capitol Federal Financial insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Capitol Federal Financial (of which 1 can't be ignored!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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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.