On July 31, 2023, David Farnsworth, the Executive Vice President and Chief Credit Officer of CVB Financial Corp (CVBF, Financial), purchased 1,250 shares of the company. This move is significant as insider buying can often be a positive indicator for the company's future performance.
Who is David Farnsworth?
David Farnsworth is a seasoned executive with extensive experience in the financial sector. As the EVP and CCO of CVB Financial Corp, he plays a crucial role in the company's credit risk management and overall financial health. His decision to increase his stake in the company is a strong vote of confidence in its future prospects.
About CVB Financial Corp
CVB Financial Corp is a bank holding company that operates through its subsidiary, Citizens Business Bank. The company offers a wide range of banking and financial services, including commercial and consumer loans, deposit services, and wealth management solutions. With a market cap of $2.65 billion, CVB Financial Corp is a significant player in the financial sector.
Insider Buying Analysis
Over the past year, David Farnsworth has purchased a total of 2,250 shares and sold 15,000 shares. His recent acquisition of 1,250 shares is a notable shift in his trading activity.
The insider transaction history for CVB Financial Corp shows a total of 7 insider buys and 2 insider sells over the past year. This trend suggests a positive sentiment among the company's insiders.
Relationship with Stock Price
On the day of David Farnsworth’s recent buy, shares of CVB Financial Corp were trading for $18.67 apiece. This gives the stock a price-earnings ratio of 10.86, which is higher than the industry median of 8.8 but lower than the company’s historical median price-earnings ratio.
With a GuruFocus Value of $25.79, CVB Financial Corp has a price-to-GF-Value ratio of 0.72, indicating that the stock is modestly undervalued. This could be a potential reason for David Farnsworth's recent purchase.
Conclusion
Insider buying, such as the recent purchase by David Farnsworth, can often be a positive sign for a company's future performance. Coupled with the fact that CVB Financial Corp's stock appears to be modestly undervalued, this could be an opportune time for investors to consider this stock.
However, as always, potential investors should conduct their own thorough research before making any investment decisions.
