We'd be surprised if People's United Financial, Inc. (NASDAQ:PBCT) shareholders haven't noticed that the Lead Director, George Carter, recently sold US$253k worth of stock at US$16.85 per share. On the bright side, that sale was only 7.1% of their holding, so we doubt it's very meaningful, on its own.
People's United Financial Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, David Norton, for US$479k worth of shares, at about US$14.89 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$16.82. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 24% of David Norton's holding.
Over the last year, we note insiders sold 87417 shares worth US$1.4m. In the last year People's United Financial insiders didn't buy any company stock. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. People's United Financial insiders own about US$51m worth of shares. That equates to 0.8% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The People's United Financial Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. And even if we look to the last year, we didn't see any purchases. On the plus side, People's United Financial makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for People's United Financial.
Of course People's United Financial may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.