Looking at Valley National Bancorp's (NASDAQ:VLY ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Valley National Bancorp
Over the last year, we can see that the biggest insider sale was by the Senior Executive Vice President of Commercial Banking, Joseph Chillura, for US$864k worth of shares, at about US$8.64 per share. So we know that an insider sold shares at around the present share price of US$8.02. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Joseph Chillura was the only individual insider to sell shares in the last twelve months.
Over the last year, we can see that insiders have bought 112.36k shares worth US$1.2m. On the other hand they divested 150.00k shares, for US$1.4m. Joseph Chillura sold a total of 150.00k shares over the year at an average price of US$9.08. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Valley National Bancorp better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Valley National Bancorp Insiders Are Selling The Stock
There was substantially more insider selling, than buying, of Valley National Bancorp shares over the last three months. In that time, Senior Executive Vice President of Commercial Banking Joseph Chillura dumped US$498k worth of shares. On the flip side, Independent Director Sidney Williams spent US$7.0k on purchasing shares. We don't view these transactions as a positive sign.
Insider Ownership Of Valley National Bancorp
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Valley National Bancorp insiders own 1.4% of the company, worth about US$58m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Valley National Bancorp Tell Us?
Unfortunately, there has been more insider selling of Valley National Bancorp stock, than buying, in the last three months. 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. So we'd only buy after careful consideration. 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 2 warning signs for Valley National Bancorp you should know about.
Of course Valley National 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.