U.S. Bancorp (NYSE:USB) insiders who sold US$2.0m worth of stock earlier this year are probably glad they did so as market cap slides to US$66b
By selling US$2.0m worth of U.S. Bancorp (NYSE:USB) stock at an average sell price of US$43.52 over the last year, insiders seemed to have made the most of their holdings. The company's market valuation decreased by US$3.9b after the stock price dropped 5.5% over the past week, but insiders were spared from painful losses.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for U.S. Bancorp
The Last 12 Months Of Insider Transactions At U.S. Bancorp
Over the last year, we can see that the biggest insider sale was by the insider, Timothy Welsh, for US$834k worth of shares, at about US$43.92 per share. So we know that an insider sold shares at around the present share price of US$43.11. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Insiders in U.S. Bancorp didn't buy any shares in the last year. You can see the insider transactions (by companies and 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insiders At U.S. Bancorp Have Sold Stock Recently
The last three months saw significant insider selling at U.S. Bancorp. In total, insiders dumped US$2.0m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
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. U.S. Bancorp insiders own about US$107m worth of shares (which is 0.2% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The U.S. Bancorp Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing U.S. Bancorp. In terms of investment risks, we've identified 2 warning signs with U.S. Bancorp and understanding them should be part of your investment process.
But note: U.S. Bancorp 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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