Some The Bank of New York Mellon Corporation (NYSE:BK) shareholders may be a little concerned to see that the Senior EVP & CEO of Investment Management, Mitchell Harris, recently sold a whopping US$2.2m worth of stock at a price of US$44.60 per share. That sale reduced their total holding by 41% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Bank of New York Mellon
In fact, the recent sale by Mitchell Harris was the biggest sale of Bank of New York Mellon shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of US$46.14. 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 41% of Mitchell Harris's holding.
All up, insiders sold more shares in Bank of New York Mellon than they bought, over the last year. 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!
I will like Bank of New York Mellon better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Bank of New York Mellon insiders own 0.2% of the company, worth about US$89m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Bank of New York Mellon Insiders?
An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! Of course, the future is what matters most. So if you are interested in Bank of New York Mellon, you should check out this free report on analyst forecasts for the company.
But note: Bank of New York Mellon may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.