Advertisement
New Zealand markets close in 3 hours 42 minutes
  • NZX 50

    11,613.77
    -14.09 (-0.12%)
     
  • NZD/USD

    0.6123
    -0.0004 (-0.06%)
     
  • NZD/EUR

    0.5697
    -0.0007 (-0.13%)
     
  • ALL ORDS

    8,023.30
    +48.20 (+0.60%)
     
  • ASX 200

    7,784.00
    +50.30 (+0.65%)
     
  • OIL

    81.74
    +0.11 (+0.13%)
     
  • GOLD

    2,342.60
    -1.80 (-0.08%)
     
  • NASDAQ

    19,474.62
    -225.81 (-1.15%)
     
  • FTSE

    8,281.55
    +43.83 (+0.53%)
     
  • Dow Jones

    39,411.21
    +260.88 (+0.67%)
     
  • DAX

    18,325.58
    +162.06 (+0.89%)
     
  • Hang Seng

    18,027.71
    0.00 (0.00%)
     
  • NIKKEI 225

    38,818.35
    +13.70 (+0.04%)
     
  • NZD/JPY

    97.5590
    -0.1620 (-0.17%)
     

Insiders of Coastal Financial Corporation (NASDAQ:CCB) received good value on their investment after their US$1.5m purchase jumped US$178k in value

Coastal Financial Corporation (NASDAQ:CCB) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 14% resulting in a US$72m addition to the company’s market value. As a result, their original purchase of US$1.5m worth of stock is now worth US$1.6m.

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 Coastal Financial

The Last 12 Months Of Insider Transactions At Coastal Financial

Over the last year, we can see that the biggest insider purchase was by Vice Chairman Andrew Skotdal for US$1m worth of shares, at about US$40.50 per share. We do like to see buying, but this purchase was made at well below the current price of US$45.48. 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.

ADVERTISEMENT

In the last twelve months insiders purchased 35.97k shares for US$1.5m. On the other hand they divested 4.67k shares, for US$191k. In total, Coastal Financial 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!

insider-trading-volume
insider-trading-volume

Coastal Financial is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Coastal Financial Have Sold Stock Recently

The last three months saw significant insider selling at Coastal Financial. In total, insiders sold US$191k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does Coastal Financial Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Coastal Financial insiders own 18% of the company, currently worth about US$106m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Coastal Financial Insiders?

Insiders sold stock recently, but they haven't been buying. On the other hand, the insider transactions over the last year are encouraging. On top of that, insiders own a significant portion of the company. So we're not too bothered by recent selling. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 3 warning signs for Coastal Financial and we suggest you have a look.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here