Anyone interested in C&F Financial Corporation (NASDAQ:CFFI) should probably be aware that the President, Thomas Cherry, recently divested US$140k worth of shares in the company, at an average price of US$70.00 each. However, the silver lining is that the sale only reduced their total holding by 4.9%, so we're hesitant to read anything much into it, on its own.
C&F Financial Insider Transactions Over The Last Year
In fact, the recent sale by Thomas Cherry was the biggest sale of C&F Financial shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$67.01. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Over the last year, we can see that insiders have bought 2.50k shares worth US$98k. But they sold 3.46k shares for US$224k. All up, insiders sold more shares in C&F Financial than they bought, over the last year. 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!
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Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company 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. C&F Financial insiders own about US$15m worth of shares. That equates to 6.6% of the company. 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 C&F Financial Insider Transactions Indicate?
An insider hasn't bought C&F Financial stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - C&F Financial has 1 warning sign we think you should be aware of.
But note: C&F Financial 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.