Insider Buying: Community West Bancshares Independent Vice Chairman of the Board Bought US$52k Of Shares

Whilst it may not be a huge deal, we thought it was good to see that the Community West Bancshares (NASDAQ:CWBC) Independent Vice Chairman of the Board, Robert Bartlein, recently bought US$52k worth of stock, for US$17.18 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

We've discovered 3 warning signs about Community West Bancshares. View them for free.

The Last 12 Months Of Insider Transactions At Community West Bancshares

The Secretary & Independent Director, Steven McDonald, made the biggest insider sale in the last 12 months. That single transaction was for US$237k worth of shares at a price of US$21.51 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$17.39). So it may not shed much light on insider confidence at current levels.

Happily, we note that in the last year insiders paid US$523k for 29.82k shares. But insiders sold 21.80k shares worth US$446k. In total, Community West Bancshares insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Community West Bancshares

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Does Community West Bancshares 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. It appears that Community West Bancshares insiders own 13% of the company, worth about US$43m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Community West Bancshares Insiders?

Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Insiders own shares in Community West Bancshares and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Community West Bancshares has 3 warning signs and it would be unwise to ignore them.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.