Insider Spends US$455k Buying More Shares In CVB Financial

Investors who take an interest in CVB Financial Corp. (NASDAQ:CVBF) should definitely note that the Independent Director, Raymond O’Brien, recently paid US$22.77 per share to buy US$455k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 30%.

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The Last 12 Months Of Insider Transactions At CVB Financial

The Independent Chairman of the Board George Borba made the biggest insider purchase in the last 12 months. That single transaction was for US$1m worth of shares at a price of US$18.67 each. We do like to see buying, but this purchase was made at well below the current price of US$22.83. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months insiders purchased 250.08k shares for US$5.0m. But insiders sold 12.20k shares worth US$247k. In the last twelve months there was more buying than selling by CVB Financial insiders. 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!

View our latest analysis for CVB Financial

CVB Financial 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.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. CVB Financial insiders own 5.2% of the company, currently worth about US$210m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The CVB Financial Insider Transactions Indicate?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives 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 these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that CVB Financial has 1 warning sign and it would be unwise to ignore this.

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.