Have Coastal Financial Insiders Been Selling Stock?

We'd be surprised if Coastal Financial Corporation (NASDAQ:CCB) shareholders haven't noticed that the Independent Director, Steven Hovde, recently sold US$186k worth of stock at US$53.15 per share. However, the silver lining is that the sale only reduced their total holding by 0.2%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for Coastal Financial

The Last 12 Months Of Insider Transactions At Coastal Financial

The Executive VP, Joel Edwards, made the biggest insider sale in the last 12 months. That single transaction was for US$540k worth of shares at a price of US$44.45 each. That means that an insider was selling shares at slightly below the current price (US$53.19). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 29% of Joel Edwards's holding.

Coastal Financial insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Coastal Financial

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Coastal Financial insiders own about US$133m worth of shares (which is 19% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Coastal Financial Tell Us?

An insider sold Coastal Financial shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Coastal Financial. While conducting our analysis, we found that Coastal Financial has 1 warning sign and it would be unwise to ignore this.

But note: Coastal Financial 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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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.