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From what we can see, insiders were net buyers in Catalyst Bancorp, Inc.'s (NASDAQ:CLST ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Catalyst Bancorp
Catalyst Bancorp Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by President Joseph Zanco for US$172k worth of shares, at about US$11.87 per share. That means that an insider was happy to buy shares at above the current price of US$11.71. 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. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Joseph Zanco.
The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Catalyst Bancorp is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Catalyst Bancorp insiders own about US$3.3m worth of shares (which is 6.3% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Catalyst Bancorp Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Catalyst Bancorp insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Catalyst Bancorp. To help with this, we've discovered 2 warning signs (1 can't be ignored!) that you ought to be aware of before buying any shares in Catalyst Bancorp.