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Canadian Imperial Bank of Commerce Insiders Placed Bullish Bets Worth CA$5.68m

Quite a few insiders have dramatically grown their holdings in Canadian Imperial Bank of Commerce (TSE:CM) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Canadian Imperial Bank of Commerce

The Last 12 Months Of Insider Transactions At Canadian Imperial Bank of Commerce

Over the last year, we can see that the biggest insider purchase was by President Victor Dodig for CA$3.0m worth of shares, at about CA$58.08 per share. So it's clear an insider wanted to buy, at around the current price, which is CA$63.08. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Canadian Imperial Bank of Commerce share holders is that insiders were buying at near the current price.

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In the last twelve months Canadian Imperial Bank of Commerce insiders were buying shares, but not selling. 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
insider-trading-volume

Canadian Imperial Bank of Commerce is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Canadian Imperial Bank of Commerce Insiders Bought Stock Recently

It's good to see that Canadian Imperial Bank of Commerce insiders have made notable investments in the company's shares. Independent Director Ammar Al-Joundi spent CA$509k on stock, and there wasn't any selling. This makes one think the business has some good points.

Insider Ownership Of Canadian Imperial Bank of Commerce

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Canadian Imperial Bank of Commerce insiders own about CA$29m worth of shares. That equates to 0.05% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Canadian Imperial Bank of Commerce Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Canadian Imperial Bank of Commerce insiders are well aligned, and that they may think the share price is too low. 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. While conducting our analysis, we found that Canadian Imperial Bank of Commerce has 1 warning sign and it would be unwise to ignore it.

Of course Canadian Imperial Bank of Commerce 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.