Bullish insiders bet US$916k on Colony Bankcorp, Inc. (NASDAQ:CBAN)

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 Colony Bankcorp, Inc. (NASDAQ:CBAN), that sends out a positive message to the company’s shareholders.

Although we don’t think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Colony Bankcorp

The Last 12 Months Of Insider Transactions At Colony Bankcorp

Over the last year, we can see that the biggest insider purchase was by Independent Director Meagan Mowry for US$190k worth of shares, at about US$16.44 per share. That means that an insider was happy to buy shares at above the current price of US$14.21. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. To us, it’s very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Colony Bankcorp insiders may have bought shares in the last year, but they didn’t sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume

Colony Bankcorp is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At Colony Bankcorp Have Bought Stock Recently

Over the last three months, we’ve seen significant insider buying at Colony Bankcorp. Not only was there no selling that we can see, but they collectively bought US$81k worth of shares. This makes one think the business has some good points.

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. Colony Bankcorp insiders own about US$20m worth of shares. That equates to 8.0% 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 Does This Data Suggest About Colony Bankcorp Insiders?

It’s certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Colony Bankcorp insiders are well aligned, and that they may think the share price is too low. 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 – Colony Bankcorp has 2 warning signs we think you should be aware of.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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, 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.

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