We'd be surprised if UMB Financial Corporation (NASDAQ:UMBF) shareholders haven't noticed that the Executive VP & Chief Accounting Officer, Brian Walker, recently sold US$102k worth of stock at US$68.00 per share. That sale was 33% of their holding, so it does make us raise an eyebrow.
UMB Financial Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the President, J. Kemper, sold US$1.6m worth of shares at a price of US$65.96 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$67.16. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 1.0% of J. Kemper's holding.
Happily, we note that in the last year insiders paid US$352k for 5394.03 shares. On the other hand they divested 49804 shares, for US$3.4m. In total, UMB Financial insiders sold more than they bought over the last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like UMB Financial better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does UMB Financial Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that UMB Financial insiders own 5.2% of the company, worth about US$170m. 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 UMB Financial Insiders?
The insider sales have outweighed the insider buying, at UMB Financial, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for UMB Financial.
But note: UMB Financial 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.
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.