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Capitol Federal Financial Insiders Placed Bullish Bets Worth US$753.8k

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Capitol Federal Financial, Inc.'s (NASDAQ:CFFN) case, it's fantastic news for shareholders.

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.

See our latest analysis for Capitol Federal Financial

Capitol Federal Financial Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director James Morris bought US$106k worth of shares at a price of US$5.07 per share. We do like to see buying, but this purchase was made at well below the current price of US$5.76. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

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Capitol Federal Financial insiders may have bought shares in the last year, but they didn't sell any. 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!

insider-trading-volume
insider-trading-volume

Capitol Federal 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 Capitol Federal Financial Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Capitol Federal Financial. Not only was there no selling that we can see, but they collectively bought US$128k worth of shares. That shows some optimism about the company's future.

Insider Ownership Of Capitol Federal Financial

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Capitol Federal Financial insiders own 2.3% of the company, worth about US$18m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Capitol Federal Financial Insiders?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Capitol Federal Financial shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Capitol Federal Financial is showing 2 warning signs in our investment analysis, and 1 of those is potentially serious...

But note: Capitol Federal 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.

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.