It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Associated Banc-Corp (NYSE:ASB), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
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Associated Banc-Corp Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when Madison Market President of Associated Bank David Stein sold US$391k worth of shares at a price of US$25.48 per share. Although we don’t gain confidence from insider selling, we note that this large sale was at well above current price of US$20.44. So it is hard to draw any strong conclusion from it.
In total, Associated Banc-Corp insiders sold more than they bought over the last year. The sellers received a price of around US$25.41, on average. It is certainly not great to see that insiders have sold shares in the company. But we note that the selling, on average, was at well above the recently traded price of US$20.44. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders at Associated Banc-Corp Have Sold Stock Recently
The last three months saw some Associated Banc-Corp insider selling. US$47k worth of shares were sold by Executive VP & CFO Christopher Del Moral-Niles. But US$2.4k was spent on buying, too, (as we mentioned above). While it’s not great to see insider selling, the net amount sold isn’t enough for us to want to read anything into it.
Insider Ownership of Associated Banc-Corp
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.5% of Associated Banc-Corp shares, worth about US$51m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Associated Banc-Corp Tell Us?
Our data shows a little more insider selling than buying in the last three months. But the net divestment is not enough to concern us at all. We’re a little cautious about the insider selling at Associated Banc-Corp. The modest level of insider ownership is, at least, some comfort. 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.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.