Community Trust Bancorp Insiders Placed Bullish Bets Worth US$867.3k

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Community Trust Bancorp, Inc. (NASDAQ:CTBI), that sends out a positive message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Community Trust Bancorp

Community Trust Bancorp Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Executive Vice President, James Draughn, for US$208k worth of shares, at about US$41.61 per share. That means that even when the share price was below the current price of US$44.90, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 28% of James Draughn's holding. James Draughn was the only individual insider to sell over the last year.

Over the last year, we can see that insiders have bought 21.86k shares worth US$867k. On the other hand they divested 5.00k shares, for US$208k. Overall, Community Trust Bancorp 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Community Trust Bancorp Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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. It appears that Community Trust Bancorp insiders own 4.2% of the company, worth about US$34m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Community Trust Bancorp Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Community Trust Bancorp and their transactions don't cause us concern. Of course, the future is what matters most. So if you are interested in Community Trust Bancorp, you should check out this free report on analyst forecasts for the company.

But note: Community Trust Bancorp 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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com