Have Community Bank System Insiders Been Selling Stock?

Community Bank System, Inc. +4.76%

Community Bank System, Inc.

CBU

44.50

+4.76%

Anyone interested in Community Bank System, Inc. (NYSE:CBU) should probably be aware that the Independent Lead Director, Sally Steele, recently divested US$499k worth of shares in the company, at an average price of US$53.05 each. That sale was 20% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Community Bank System

Community Bank System Insider Transactions Over The Last Year

In fact, the recent sale by Sally Steele was the biggest sale of Community Bank System shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$52.84. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last twelve months insiders purchased 10.71k shares for US$512k. But insiders sold 9.40k shares worth US$499k. In total, Community Bank System insiders bought more than they sold over the last year. Their average price was about US$47.77. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NYSE:CBU Insider Trading Volume December 29th 2023

Community Bank System is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Community Bank System

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Community Bank System insiders own about US$38m worth of shares. That equates to 1.3% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Community Bank System Insiders?

The insider sales have outweighed the insider buying, at Community Bank System, in the last three months. On the other hand, the insider transactions over the last year are encouraging. And insiders do own shares. So the recent selling doesn't worry us too much. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 1 warning sign for Community Bank System and we suggest you have a look.

But note: Community Bank System may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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