CVB Financial Corporation (NASDAQ:CVBF) shareholders (or potential shareholders) will be pleased to note that George Borba, Independent Vice Chairman of the Board, recently purchased US$5.0m worth of shares at US$16.15. There’s no denying that buying that much suggests he’s guilty of a bright future, even if he’s proportionally increased his holdings by 4.3%.
Check out our latest analysis of CVB Financial
Insider trading at CVB Financial in the last 12 months
Notably, the recent purchase of Independent Vice Chairman of the Board George Borba was not the only time they bought CVB Financial shares. They previously bought a further US$5.0m worth of shares at US$19.52 per share. That means an insider wants to buy shares even when the share price is higher than US$17.63 (latest price). Even if their views changed after the acquisition, this suggests that they at least had faith in the company’s future. For us, it is very important to consider the price that insiders pay for shares. Generally speaking, insiders buy a stock above its current price, which catches our eye because they believe the stock is worth buying even at the higher price.
Over the past twelve months, CVB’s financial professionals have been buying stocks but not selling them. Below you can see a visual representation of insider transactions (by companies and individuals) for the past 12 months. You can see the exact details of each insider transaction by clicking on the graph below!
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Internal ownership of CVB Financial
Looking at the total insider shares in a company can help inform your view of whether they are well aligned with common shareholders. We usually want to see fairly high insider ownership. It is interesting to see that CVB Financial insiders own 5.7% of the company, which is valued at about US$141m. Such significant ownership by insiders generally increases the likelihood that the company will be guided by the interests of all shareholders.
So what does CVB Financial Insider Trading mean?
It is certainly positive to see the latest insider buying. We also take confidence from the long-term insider trading picture. Along with high insider ownership, this analysis suggests that insiders are very bullish about CVB financials. That’s what I love to see! If you’re like me, you might want to wonder if this company is growing or shrinking. Fortunately, you can verify this free It shows analysts’ predictions about the future.
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For the purpose of this article, insiders are those who report their transactions to the relevant regulatory body. Currently, we only account for open market transactions and direct interests in private interests, but not derivative transactions or indirect interests.
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