We wouldn't blame U.S. Bancorp (NYSE:USB) shareholders if they were a little worried about the fact that Terrance Dolan, the Chief Administration Officer & Vice Chair recently netted about US$1.0m selling shares at an average price of US$45.04. That sale reduced their total holding by 13% which is hardly insignificant, but far from the worst we've seen.
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The Last 12 Months Of Insider Transactions At U.S. Bancorp
In fact, the recent sale by Chief Administration Officer & Vice Chair Terrance Dolan was not their only sale of U.S. Bancorp shares this year. Earlier in the year, they fetched US$39.75 per share in a -US$1.0m sale. So it's clear an insider wanted to take some cash off the table, even below the current price of US$45.01. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 13% of Terrance Dolan's holding.
Over the last year, we can see that insiders have bought 82.73k shares worth US$2.7m. But they sold 72.61k shares for US$3.0m. In total, U.S. Bancorp insiders sold more 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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 U.S. Bancorp Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that U.S. Bancorp insiders own 0.2% of the company, worth about US$140m. 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 U.S. Bancorp Tell Us?
Insiders 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. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. In terms of investment risks, we've identified 1 warning sign with U.S. Bancorp and understanding it should be part of your investment process.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.