Some Western Alliance Bancorporation (NYSE:WAL) shareholders may be a little concerned to see that the Chief Human Resource Officer, Barbara Kennedy, recently sold a substantial US$904k worth of stock at a price of US$81.59 per share. That sale reduced their total holding by 26% which is hardly insignificant, but far from the worst we've seen.
Western Alliance Bancorporation Insider Transactions Over The Last Year
In fact, the recent sale by Barbara Kennedy was the biggest sale of Western Alliance Bancorporation shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$80.35. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
In the last year Western Alliance Bancorporation insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Western Alliance Bancorporation
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. We usually like to see fairly high levels of insider ownership. It's great to see that Western Alliance Bancorporation insiders own 5.2% of the company, worth about US$457m. 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 Western Alliance Bancorporation Insider Transactions Indicate?
Insiders haven't bought Western Alliance Bancorporation stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. 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. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Western Alliance Bancorporation has 2 warning signs and it would be unwise to ignore these.
But note: Western Alliance Bancorporation 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 of direct interests only, but not derivative transactions or indirect interests.
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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.