When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in USCB Financial Holdings, Inc.'s (NASDAQ:USCB) instance, it's good 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.
View our latest analysis for USCB Financial Holdings
In the last twelve months, the biggest single purchase by an insider was when Executive VP & CFO Robert Anderson bought US$226k worth of shares at a price of US$11.48 per share. Even though the purchase was made at a significantly lower price than the recent price (US$15.00), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months USCB Financial Holdings insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
USCB Financial Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Over the last three months, we've seen significant insider buying at USCB Financial Holdings. We can see that Independent Director Ramon Rodriguez paid US$88k for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that USCB Financial Holdings insiders own 3.0% of the company, worth about US$8.9m. We do generally prefer see higher levels of insider ownership.
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on USCB Financial Holdings stock. Of course, the future is what matters most. So if you are interested in USCB Financial Holdings, you should check out this free report on analyst forecasts for the company.
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 of direct interests only, but not derivative transactions or indirect interests.
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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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