We wouldn't blame Stifel Financial Corp. (NYSE:SF) shareholders if they were a little worried about the fact that Mark Fisher, a company insider, recently netted about US$524k selling shares at an average price of US$64.75. That sale reduced their total holding by 17% which is hardly insignificant, but far from the worst we've seen.
View our latest analysis for Stifel Financial
Stifel Financial Insider Transactions Over The Last Year
The Senior VP, Thomas Michaud, made the biggest insider sale in the last 12 months. That single transaction was for US$3.5m worth of shares at a price of US$58.85 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$67.43. 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. We note that the biggest single sale was only 37% of Thomas Michaud's holding.
Over the last year, we can see that insiders have bought 40.17k shares worth US$2.3m. But they sold 92.14k shares for US$5.5m. All up, insiders sold more shares in Stifel Financial than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Stifel Financial Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Stifel Financial insiders own 3.6% of the company, currently worth about US$238m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Stifel Financial Tell Us?
An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 2 warning signs for Stifel Financial that deserve your attention before buying any shares.
Of course Stifel Financial may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
