Central Pacific Financial Corp. (NYSE:CPF) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 11% resulting in a US$56m addition to the company's market value. As a result, their original purchase of US$197.5k worth of stock is now worth US$285.5k.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Central Pacific Financial Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Christine H. Camp bought US$188k worth of shares at a price of US$14.84 per share. Even though the purchase was made at a significantly lower price than the recent price (US$20.76), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 13.75k shares worth US$197k. But insiders sold 6.67k shares worth US$127k. Overall, Central Pacific 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

Central Pacific Financial is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Central Pacific Financial Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Central Pacific Financial shares. In total, Chairman Anli Ngo dumped US$63k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership Of Central Pacific Financial

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Central Pacific Financial insiders own 2.3% of the company, worth about US$13m. 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 Central Pacific Financial Tell Us?

An insider sold stock recently, but they haven't been buying. On the other hand, the insider transactions over the last year are encouraging. And insiders do own shares. So the recent selling doesn't worry us too much. Of course, the future is what matters most. So if you are interested in Central Pacific Financial, you should check out this free report on analyst forecasts for the company.

Of course Central Pacific 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.