Over the last year, a good number of insiders have significantly increased their holdings in M&T Bank Corporation (NYSE:MTB). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for M&T Bank
M&T Bank Insider Transactions Over The Last Year
The Senior EVP & Chief Financial Officer Daryl Bible made the biggest insider purchase in the last 12 months. That single transaction was for US$1.2m worth of shares at a price of US$121 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$137. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid US$1.8m for 15.39k shares. But they sold 7.14k shares for US$929k. In the last twelve months there was more buying than selling by M&T Bank insiders. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At M&T Bank Have Bought Stock Recently
We saw some M&T Bank insider buying shares in the last three months. Senior EVP & Chief Financial Officer Daryl Bible bought US$555k worth of shares in that time. But they sold US$523k worth. It is good to see that insiders have been buying, but they did not buy very many shares, in the scheme of things.
Insider Ownership Of M&T Bank
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. M&T Bank insiders own 0.5% of the company, currently worth about US$115m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The M&T Bank Insider Transactions Indicate?
We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like M&T Bank insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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 M&T Bank you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.