Jeffrey Johnson Bought 15% More Shares In Capitol Federal Financial \

Even if it's not a huge purchase, we think it was good to see that Jeffrey Johnson, the Independent Director of Capitol Federal Financial, Inc. (NASDAQ:CFFN) recently shelled out US$54k to buy stock, at US$5.35 per share. That purchase might not be huge but it did increase their holding by 15%.

View our latest analysis for Capitol Federal Financial

The Last 12 Months Of Insider Transactions At Capitol Federal Financial

In the last twelve months, the biggest single purchase by an insider was when Independent Director Morris Huey bought US$81k worth of shares at a price of US$7.87 per share. That means that an insider was happy to buy shares at above the current price of US$5.81. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Happily, we note that in the last year insiders paid US$543k for 71.70k shares. On the other hand they divested 2.27k shares, for US$19k. Overall, Capitol Federal Financial insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Capitol Federal Financial is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

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. It appears that Capitol Federal Financial insiders own 2.1% of the company, worth about US$16m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Capitol Federal Financial Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Capitol Federal Financial shares, given these transactions (along with notable insider ownership of the company). 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. At Simply Wall St, we've found that Capitol Federal Financial has 2 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.

But note: Capitol Federal 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, but not derivative transactions.

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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.

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