Stock Analysis

Community Bank System Insider Lowered Holding By 20% During Last Year

NYSE:CBU
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From what we can see, insiders were net sellers in Community Bank System, Inc.'s (NYSE:CBU ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Community Bank System

The Last 12 Months Of Insider Transactions At Community Bank System

The Independent Director, Sally Steele, made the biggest insider sale in the last 12 months. That single transaction was for US$499k worth of shares at a price of US$53.05 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$46.41. So it is hard to draw any strong conclusion from it. Sally Steele was the only individual insider to sell shares in the last twelve months.

Over the last year, we can see that insiders have bought 6.71k shares worth US$287k. But insiders sold 12.90k shares worth US$669k. Sally Steele divested 12.90k shares over the last 12 months at an average price of US$51.89. 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!

insider-trading-volume
NYSE:CBU Insider Trading Volume May 24th 2024

I will like Community Bank System better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Community Bank System Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.2% of Community Bank System shares, worth about US$31m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Community Bank System Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Community Bank System insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

But note: Community Bank System 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.