We wouldn't blame State Street Corporation (NYSE:STT) shareholders if they were a little worried about the fact that Joseph Hooley, the Chairman of the Board recently netted about US$1.6m selling shares at an average price of US$65.70. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.3%.
The Last 12 Months Of Insider Transactions At State Street
Over the last year, we can see that the biggest insider sale was by the President, Ronald O’Hanley, for US$2.0m worth of shares, at about US$71.82 per share. So we know that an insider sold shares at around the present share price of US$70.99. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
In the last twelve months insiders purchased 6500 shares for US$388k. But insiders sold 52500 shares worth US$3.6m. Over the last year we saw more insider selling of State Street shares, than buying. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like State Street better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider 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. State Street insiders own about US$165m worth of shares (which is 0.6% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About State Street Insiders?
The stark truth for State Street is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Of course, the future is what matters most. So if you are interested in State Street, you should check out this free report on analyst forecasts for the company.
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.
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.