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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Codorus Valley Bancorp, Inc. (NASDAQ:CVLY), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Codorus Valley Bancorp Insider Transactions Over The Last Year
Notably, that recent purchase by John Giambalvo is the biggest insider purchase of Codorus Valley Bancorp shares that we've seen in the last year. That implies that an insider found the current price of US$22.35 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Codorus Valley Bancorp insiders decided to buy shares at close to current prices.
In the last twelve months insiders purchased 9.93k shares for US$201k. But they sold 300.00 shares for US$5.6k. Overall, Codorus Valley Bancorp insiders were net buyers during the last year. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders at Codorus Valley Bancorp Have Bought Stock Recently
It's good to see that Codorus Valley Bancorp insiders have made notable investments in the company's shares. Overall, three insiders shelled out US$131k for shares in the company -- and none sold. This makes one think the business has some good points.
Does Codorus Valley Bancorp Boast High Insider Ownership?
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. Insiders own 4.6% of Codorus Valley Bancorp shares, worth about US$10m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Codorus Valley Bancorp Tell Us?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Codorus Valley Bancorp we think they are probably pretty confident of a bright future. 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. In terms of investment risks, we've identified 1 warning sign with Codorus Valley Bancorp and understanding this should be part of your investment process.
Of course Codorus Valley Bancorp may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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.
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