Insider Buying: CVB Financial Independent Vice Chairman of the Board Bought US$1m Of Shares

CVB Financial Corp. (NASDAQ:CVBF) shareholders (or potential shareholders) will be happy to see that the Independent Vice Chairman of the Board, George Borba, recently bought a whopping US$1m worth of stock, at a price of US$19.90. While that only increased their holding size by 0.7%, it is still a big swing by our standards.

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CVB Financial Insider Transactions Over The Last Year

In fact, the recent purchase by Independent Vice Chairman of the Board George Borba was not their only acquisition of CVB Financial shares this year. Earlier in the year, they paid US$18.67 per share in a US$1m purchase. That implies that an insider found the current price of US$20.30 per share to be enticing. 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. 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. The good news for CVB Financial share holders is that an insider was buying at near the current price. George Borba was the only individual insider to buy during the last year.

George Borba bought 156.00k shares over the last 12 months at an average price of US$19.23. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for CVB Financial

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that CVB Financial insiders own 5.1% of the company, worth about US$179m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About CVB Financial Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about CVB Financial. One for the watchlist, at least! 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 CVB Financial and understanding it should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.