Yahoo Finance Did Canadian Imperial Bank of Commerce (TSE:CM) Insiders Sell Shares?
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Canadian Imperial Bank of Commerce (TSE:CM).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
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The Last 12 Months Of Insider Transactions At Canadian Imperial Bank of Commerce
Over the last year, we can see that the biggest insider sale was by President Victor Dodig for CA$2.0m worth of shares, at about CA$123 per share. That means that an insider was selling shares at around the current price of CA$107. While their view may have changed since the sale, this is not a particularly positive fact. We usually pause to reflect on the potential that a stock has a high valuation, if insiders have been selling at around the current price.
Over the last year, we can see that insiders have bought 4.20k shares worth CA$494k. On the other hand they divested 18.50k shares, for CA$2.3m. All up, insiders sold more shares in Canadian Imperial Bank of Commerce than they bought, over the last year. The sellers received a price of around CA$123, on average. It’s not particularly great to see insiders were selling shares around current prices. Since insiders sell for many reasons, we wouldn’t put too much weight on it. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders at Canadian Imperial Bank of Commerce Have Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at Canadian Imperial Bank of Commerce. We can see that Director Barry Zubrow paid CA$168k for shares in the company. No-one sold. That shows some optimism about the company’s future.
Does Canadian Imperial Bank of Commerce Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.03% of Canadian Imperial Bank of Commerce shares, worth about CA$15m. 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 Canadian Imperial Bank of Commerce Insiders?
It is good to see recent insider purchase. But we can’t say the same for the transactions over the last 12 months. The more recent transactions are a positive, but Canadian Imperial Bank of Commerce insiders haven’t shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. So they seem pretty well aligned, overall. Of course, the future is what matters most. So if you are interested in Canadian Imperial Bank of Commerce, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
