Insider Activity: Century Bancorp (CNBKA)

Major owner $140,000 additional buy.

James Filler, a major owner at Century Bancorp (CNBKA), added 1,612 shares to his stake lately. This brought his total ownership up to 725,341 shares, and he paid nearly $140,000 to make the trade.

This follows up from a 1,044 share buy he made last month, and other insiders have been buyers of shares near recent prices for the regional bank as well.

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  • There have been no insider sales in the past three years.

    Shares of the bank are up nearly 13 percent in the past year, handily beating the S&P 500’s return in that timeframe. Shares trade around 12 times earnings, and the bank has a huge profit margin of 35 percent. The only downside is that shares are a bit pricey relative to book value, a conservative measure of the bank’s book of loans. With a 1.5 price to book value, shares are pricing in the bank’s other qualities besides its loans.

    Action to take: Besides the bank’s current profitability, smaller banks are often a target of larger banks for potential mergers and acquisitions. Given the long-term trend in the banking sector to consolidate, Century Bancorp looks like a potential buy under $90 per share, and provides investors a 0.5 percent yield.

    There are no options available to trade on shares, so speculators looking to trade a smaller banking play would need to look elsewhere.