We'd be surprised if Byline Bancorp, Inc. (NYSE:BY) shareholders haven't noticed that the President & Director, Alberto Paracchini, recently sold US$305k worth of stock at US$30.51 per share. On the bright side, that sale was only 5.6% of their holding, so we doubt it's very meaningful, on its own.
The Last 12 Months Of Insider Transactions At Byline Bancorp
Notably, that recent sale by President & Director Alberto Paracchini was not the only time they sold Byline Bancorp shares this year. Earlier in the year, they fetched US$21.08 per share in a -US$842k sale. So it's clear an insider wanted to take some cash off the table, even below the current price of US$31.57. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 17% of Alberto Paracchini's stake.
Over the last year, we can see that insiders have bought 31.36k shares worth US$674k. On the other hand they divested 103.67k shares, for US$2.4m. Over the last year we saw more insider selling of Byline Bancorp shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Byline Bancorp insiders own 34% of the company, currently worth about US$476m 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.
So What Does This Data Suggest About Byline Bancorp Insiders?
The insider sales have outweighed the insider buying, at Byline Bancorp, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Byline Bancorp makes money, and is growing profits. 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. Every company has risks, and we've spotted 1 warning sign for Byline Bancorp you should know about.
Of course Byline Bancorp 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.
