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Trade Alert: The Lead Independent Director Of Customers Bancorp, Inc. (NYSE:CUBI), Daniel Rothermel, Has Just Spent US$54k Buying 5.1% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the Customers Bancorp, Inc. (NYSE:CUBI) Lead Independent Director, Daniel Rothermel, recently bought US$54k worth of stock, for US$10.72 per share. However, it only increased their shares held by 5.1%, and it wasn't a huge purchase by absolute value, either.
View our latest analysis for Customers Bancorp
The Last 12 Months Of Insider Transactions At Customers Bancorp
In the last twelve months, the biggest single purchase by an insider was when President & Vice Chairman Samvir Sidhu bought US$125k worth of shares at a price of US$42.10 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$20.04). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders paid US$240k for 9.47k shares. But they sold 1.00k shares for US$43k. In total, Customers Bancorp insiders bought more than they sold over the last year. The average buy price was around US$25.41. I'd consider this a positive as it suggests insiders see value at around the current price. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of Customers Bancorp
Many investors like to check how much of a company is owned by 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 Customers Bancorp insiders own 6.9% of the company, worth about US$44m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Customers Bancorp Insider Transactions Indicate?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Customers Bancorp we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Customers Bancorp. Our analysis shows 2 warning signs for Customers Bancorp (1 makes us a bit uncomfortable!) and we strongly recommend you look at these before investing.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
What are the risks and opportunities for Customers Bancorp?
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.
Rewards
Trading at 77.1% below our estimate of its fair value
Risks
Earnings are forecast to decline by an average of 2.6% per year for the next 3 years
Volatile share price over the past 3 months
Further research on
Customers Bancorp
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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.
About NYSE:CUBI
Customers Bancorp
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.
Very undervalued with flawless balance sheet.
