Insider Activity Report: Community Financial System (CBU)

Dimitar Karaivanov, President and CEO of Community Financial System (CBU), recently bought 1,000 shares. The buy increased his stake by 5%, and came to a total cost of $43,520.

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  • This is the CEO’s second buy of the year, following a 1,000 share pickup in February, paying about the same price. Since then, one company director has sold 3% of his position. Going further back, insider buying far exceeded insider selling in 2023.

    Overall, CBU insiders own 1.3% of shares.

    The Syracuse-based regional bank is down 15% over the past year.

    While most regional banks have struggled with the rise in interest rates over the past two years, CBU has held up well. The past 12 months showed a 42% rise in revenues, and earnings soared 605%.

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  • Plus, the bank has a healthy 24% profit margin. And shares trade at a premium to book value, indicating that the market isn’t worried about the quality of the bank’s loans.

    Action to take: Shares have been range-bound over the last year, and are at a six-month low. They could see a bounce from here over the summer.

    At current prices, CBU also pays a 4.2% dividend.

    For traders, the August $55 calls, last trading for about $2.50, could see mid-double-digit returns on a pop higher in the coming weeks. Traders should be able to book a profit well before expiration.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.

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