Every time I think about how Canada's regional banks are likely to perform in a downturn, relative to the national players, I think back to any commodity-related crisis or regional situation we've had in the recent past which has impacted banks such as Canadian Western Bank (TSX:CWB).
One doesn't have to look too far back to see just how hard Canadian banks can be hit by region-specific crises; as such, I've focused most of my attention on Canada's largest banks.
That being said, seeing recent transaction data from insiders at banks such as Canadian Western Bank have piqued my interest, in part due to the degree to which such financial institutions have dropped of late. Over the past year, shares of Canadian Western Bank have lost approximately 25%, making shares seem cheap to insiders.
In a series of recent small transactions, insiders at CWB have continued to build larger positions in the Western Canadian bank. The company’s President and CEO, Treasurer, and one of the bank’s board members have been among those insiders who continue to gobble up shares in the beaten up lender in an attempt to profit off of a rebound.
As always, a reminder that insider selling is in no way an indication of the direction a stock is expected to move in the near-term, and long-term investors should assess the fundamentals of said company and consult an investment advisor before making any purchases.
Invest wisely, my friends.
