Trade Alert: Executive VP & Chief Information Officer Of Chemung Financial Loren Cole Has Sold Stock
We'd be surprised if Chemung Financial Corporation (NASDAQ:CHMG) shareholders haven't noticed that the Executive VP & Chief Information Officer, Loren Cole, recently sold US$431k worth of stock at US$83.50 per share. That sale was 31% of their holding, so it does make us raise an eyebrow.
Chemung Financial Insider Transactions Over The Last Year
In fact, the recent sale by Loren Cole was the biggest sale of Chemung Financial shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$82.97. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Over the last year we saw more insider selling of Chemung Financial shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Chemung Financial
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Insider Ownership
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. Chemung Financial insiders own about US$81m worth of shares. That equates to 20% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Chemung Financial Insiders?
An insider sold Chemung Financial shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. But since Chemung Financial is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. 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. Every company has risks, and we've spotted 1 warning sign for Chemung Financial you should know about.
Of course Chemung Financial may not be the best stock to buy. So you may wish to see this free collection of high quality 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.