We wouldn't blame Customers Bancorp, Inc. (NYSE:CUBI) shareholders if they were a little worried about the fact that Glenn Hedde, a company insider, recently netted about US$654k selling shares at an average price of US$28.75. That's a big disposal, and it decreased their holding size by 29%, which is notable but not too bad.
Customers Bancorp Insider Transactions Over The Last Year
Notably, that recent sale by Glenn Hedde is the biggest insider sale of Customers Bancorp shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$28.48. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
In the last year Customers Bancorp insiders didn't buy any company stock. 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Customers Bancorp insiders own about US$77m worth of shares. That equates to 8.5% of the company. 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 Customers Bancorp Tell Us?
Insiders sold Customers Bancorp shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Customers Bancorp is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Customers Bancorp. Case in point: We've spotted 3 warning signs for Customers Bancorp you should be aware of, and 1 of them is significant.
Of course Customers Bancorp 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, but not derivative transactions.
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What are the risks and opportunities for Customers Bancorp?
Trading at 64.5% below our estimate of its fair value
Earnings are forecast to decline by an average of 2.4% per year for the next 3 years
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Customers Bancorp, Inc. operates as the bank holding company for Customers Bank that provides financial products and services to individual consumers, and small and middle market businesses.
Flawless balance sheet and undervalued.