ChoiceOne Financial Services Independent Director Acquires 2.9% More Stock

Investors who take an interest in ChoiceOne Financial Services, Inc. (NASDAQ:COFS) should definitely note that the Independent Director, Eric Burrough, recently paid US$28.50 per share to buy US$143k worth of the stock. Although the purchase only increased their holding by 2.9%, it is still a solid purchase in our view.

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ChoiceOne Financial Services Insider Transactions Over The Last Year

In fact, the recent purchase by Eric Burrough was the biggest purchase of ChoiceOne Financial Services 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$28.65 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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 ChoiceOne Financial Services insiders decided to buy shares at close to current prices.

In the last twelve months ChoiceOne Financial Services insiders were buying shares, but not selling. 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!

Check out our latest analysis for ChoiceOne Financial Services

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.

Does ChoiceOne Financial Services Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 8.3% of ChoiceOne Financial Services shares, worth about US$36m. 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 Do The ChoiceOne Financial Services Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest ChoiceOne Financial Services insiders are well aligned, and that they may think the share price is too low. While it's good to be aware of 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. At Simply Wall St, we've found that ChoiceOne Financial Services has 3 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.

Of course ChoiceOne Financial Services 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.