What’s The Deal With These Insiders Selling Shares?

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Let’s take a look at the insider selling activity witnessed by another bank, United Security Bancshares (NASDAQ:UBFO). Director Thompson G. Ellithorpe offloaded 1,300 units of common stock on Monday at a price of $5.24 per share. The Director currently owns a stake of 135,035 shares valued at $709,000. This move comes after the holding company for United Security Bank released its financial results for the third quarter on October 15. United Security Bancshares (NASDAQ:UBFO) posted net income of $1.89 million, compared to $1.70 million reported in the same quarter a year ago. The bank’s net interest income increased to $6.63 million from $6.53 million year-over-year. In taking a closer look at these figures, one can notice that the company’s management has been successful in improving operating efficiency lately. Thus, it would be ill-advised to suggest that the aforementioned insider trade serves as a reason for concern. Fred Cummings’ Elizabeth Park Capital Management reported owning nearly 356,000 shares of United Security Bancshares (NASDAQ:UBFO) through its 13F filing for the June quarter.

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Last but not least, we will examine the insider selling activity at Capella Education Company (NASDAQ:CPLA), an online post-secondary education services company. Director Stephen G. Shank has unloaded 68,773 shares so far this week through multiple transactions at prices ranging from $52.26-to-$56.73, all of which were held by a trust fund named the Stephen G. Shank Revocable Trust. Following the recent transactions, the trust fund owns 116,510 shares. The Director also holds an indirect ownership stake of 290,594 shares owned by several trust funds. Capella Education Company (NASDAQ:CPLA) is believed to have one of the best business models in the for-profit education sector, and is also among the handful of universities that have seen increasing enrollment. Even so, the shares of the company have lost more than 30% since the beginning of the year, so insiders are not necessarily awaiting a turnaround. The company is set to release its third quarter earnings report before the market opens on October 27, which will surely shed some light on the future course of the company. Jim Simons’ Renaissance Technologies owns roughly 978,000 shares of Capella Education Company (NASDAQ:CPLA) as of June 30.

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Disclosure: None

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