Patrick A LuisExecutive Vice President at Central Valley Community CVCYreported a major insider buy on May 18, a new SEC filing shows.
What happened: A Form 4 filing from the US Securities and Exchange Commission on Thursday showed Luis bought 4,317 shares of Central Valley Community stock. The total transaction was $60,006.
Central Valley Community At the time of writing on Friday morning, shares are trading up 0.98% at $14.45.
The Importance of Insider Transactions
Insider trading should not be the primary factor in making an investment decision, but an insider transaction can be an important factor in an investment decision.
In legal terms, an “insider” is any shareholder who owns at least 10% of a company. This can include senior executives and large hedge funds. These insiders are required to notify the public of their transactions on Form 4, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, it’s an indication that they expect the stock to go up.
Insider selling, on the other hand, can happen for a variety of reasons and doesn’t necessarily mean that the seller believes the stock will go down.
Transaction codes to focus on
investors Rather, focus on transactions that occur in the open market as identified in Table I of the Form 4 filing. A P in field 3 indicates a purchase while S indicates a sale. transaction code C specifies the conversion of an option and the transaction code A points out that the insider may have been forced to sell shares to receive compensation promised to him by the company when he was hired.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.