Chemung Financial Independent Director Acquires 7.2% More Stock

Potential Chemung Financial Corporation (NASDAQ:CHMG) shareholders may wish to note that the Independent Director, Jeffrey Streeter, recently bought US$113k worth of stock, paying US$51.92 for each share. Although the purchase only increased their holding by 7.2%, it is still a solid purchase in our view.

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Chemung Financial Insider Transactions Over The Last Year

In fact, the recent purchase by Independent Director Jeffrey Streeter was not their only acquisition of Chemung Financial shares this year. They previously made an even bigger purchase of US$482k worth of shares at a price of US$52.94 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$50.67). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months insiders purchased 21.96k shares for US$1.1m. On the other hand they divested 1.00k shares, for US$51k. Overall, Chemung Financial insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Chemung Financial

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

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Chemung Financial insiders own about US$49m worth of shares. That equates to 20% 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 Chemung Financial Insiders?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Chemung Financial insiders are well aligned, and that they may think the share price is too low. 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. You'd be interested to know, that we found 1 warning sign for Chemung Financial and we suggest you have a look.

Of course Chemung 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 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.