Some Huntington Bancshares Incorporated (NASDAQ:HBAN) shareholders may be a little concerned to see that the Lead Independent Director, David Porteous, recently sold a substantial US$1.2m worth of stock at a price of US$15.01 per share. That sale reduced their total holding by 11% which is hardly insignificant, but far from the worst we've seen.
See our latest analysis for Huntington Bancshares
Huntington Bancshares Insider Transactions Over The Last Year
In fact, the recent sale by David Porteous was the biggest sale of Huntington Bancshares shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$15.50, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 11% of David Porteous's holding.
Happily, we note that in the last year insiders paid US$891k for 63.43k shares. But they sold 327.57k shares for US$4.9m. Over the last year we saw more insider selling of Huntington Bancshares shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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).
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Huntington Bancshares insiders own 0.7% of the company, worth about US$161m. 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 Huntington Bancshares Insiders?
Insiders sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Huntington Bancshares makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Huntington Bancshares.
Of course Huntington Bancshares 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, 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.