Stock Analysis

Have Insiders Sold Customers Bancorp, Inc. (NYSE:CUBI) Shares Recently?

  •  Updated
NYSE:CUBI
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Investors may wish to note that an insider of Customers Bancorp, Inc., Steven Issa, recently netted US$79k from selling stock, receiving an average price of US$26.92. It wasn't a huge sale, but it did reduce their holding by 12%. This does not instill confidence.

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Customers Bancorp Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Head of Corporate Development & Director Samvir Sidhu bought US$261k worth of shares at a price of US$20.85 per share. We do like to see buying, but this purchase was made at well below the current price of US$26.76. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year we saw more insider selling of Customers Bancorp shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:CUBI Insider Trading Volume February 18th 2021

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Customers Bancorp 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. It appears that Customers Bancorp insiders own 8.4% of the company, worth about US$72m. 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 Customers Bancorp Tell Us?

Insiders sold Customers Bancorp shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Customers Bancorp makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Customers Bancorp. For example, Customers Bancorp has 3 warning signs (and 1 which is potentially serious) we think you should know about.

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, but not derivative transactions.

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