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We would be surprised if Capital Bancorp, Inc. (NASDAQ: CBNK) Shareholders haven’t noticed that independent director Stephen Ashman recently sold US $ 404,000 worth of shares at US $ 25.96 per share. However, the bright side is that the sale only reduced their total stake by 3.3%, so we’re hesitant to read anything about it, for themselves.
Check out our latest review for Capital Bancorp
Insider Trading of Capital Bancorp in the Past Year
In fact, the recent sale by independent director Stephen Ashman was not their only sale of Capital Bancorp shares this year. Earlier in the year, they recovered US $ 18.88 per share in a sale of – US $ 883,000. This means that even when the share price was below the current price of US $ 26.59, an insider wanted to cash in some shares. Generally, we find it disheartening when insiders sell below the current price, as it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we cannot be sure that this means that insiders think stocks are fully valued, so it is only a weak sign. This one-time sale only represented 7.1% of Stephen Ashman’s stake.
Capital Bancorp insiders have not purchased any shares in the past year. The chart below shows insider trading (by companies and individuals) over the past year. By clicking on the graph below, you can see the precise detail of each insider trade!
For those who like to find winning investments this free list of growing companies with recent insider buys, might be just the ticket.
Does Capital Bancorp pride itself on strong insider ownership?
Looking at the total insider stakes in a company can help you determine if they are aligned with common shareholders. I think it’s a good sign if the insiders own a significant number of shares in the company. Capital Bancorp insiders own 41% of the company, currently worth around US $ 150 million based on the recent share price. I like to see this level of insider ownership because it increases the chances that management is thinking in the best interests of shareholders.
What might insider trading at Capital Bancorp tell us?
An insider has not bought any shares of Capital Bancorp in the past three months, but there have been sales. And there haven’t been any purchases to comfort us in the past year. But since Capital Bancorp is profitable and growing, that doesn’t worry us too much. It’s good to see strong insider ownership, but insider selling leaves us cautious. So these insider trading can help us build a stock thesis, but it’s also worth knowing the risks this business faces. At Simply Wall St, we have found that Capital Bancorp has 2 warning signs (1 should not be ignored!) That deserve your attention before going any further in your analysis.
But beware : Capital Bancorp may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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