The fact that multiple Synovus Financial Corp. (NYSE:SNV) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors.   When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations.  However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.    

While insider transactions are not the most important thing when it comes to long-term investing,  logic dictates you should pay some attention to whether insiders are buying or selling shares.

The Last 12 Months Of Insider Transactions At Synovus Financial

The Executive VP & General Counsel, Allan Kamensky, made the biggest insider sale in the last 12 months. That single transaction was for US$676k worth of shares at a price of US$35.01 each.    So we know that an insider sold shares at around the present share price of US$34.91.  While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price.  In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).    

Happily, we note that in the last year insiders paid US$490k for 17.75k shares.  On the other hand they divested 30.83k shares, for US$1.1m.     In total, Synovus Financial insiders sold more than they bought over the last year.    The chart below shows insider transactions (by companies and individuals) over the last year.  By clicking on the graph below, you can see the precise details of each insider transaction!

NYSE:SNV Insider Trading Volume April 21st 2024

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insiders At Synovus Financial Have Sold Stock Recently  

The last quarter saw substantial insider selling of Synovus Financial shares.  In total,  insiders  dumped US$438k 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.  

Does Synovus Financial Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own.  We usually like to see fairly high levels of insider ownership.   Insiders own 1.3% of Synovus Financial shares, worth about US$65m.  While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.  

What Might The Insider Transactions At Synovus Financial Tell Us?

Insiders haven't  bought Synovus Financial stock in the last three months, but there was some selling.     And our longer term analysis of insider transactions didn't bring confidence, either.    Insider ownership isn't particularly high, so this analysis makes us cautious about the company.  We'd practice some caution before buying!      So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.    For example - Synovus Financial has 2 warning signs we think you should be aware of.  

But note: Synovus 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 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.