We wouldn't blame M&T Bank Corporation (NYSE:MTB) shareholders if they were a little worried about the fact that Darren King, the Executive VP & CFO recently netted about US$645k selling shares at an average price of US$163. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 8.2%.
M&T Bank Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Director, Robert Sadler, for US$1.4m worth of shares, at about US$165 per share. That means that even when the share price was slightly below the current price of US$168, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 10% of Robert Sadler's stake.
Over the last year we saw more insider selling of M&T Bank shares, than buying. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does M&T Bank Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. M&T Bank insiders own 3.0% of the company, currently worth about US$659m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The M&T Bank Insider Transactions Indicate?
Unfortunately, there has been more insider selling of M&T Bank stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, M&T Bank makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.