A number of Stock Yards Bancorp, Inc. (NASDAQ:SYBT) insiders sold their shares in the last year, which may have raised concerns among 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.
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 Stock Yards Bancorp
The CEO & Chairman of the Board, James Hillebrand, made the biggest insider sale in the last 12 months. That single transaction was for US$284k worth of shares at a price of US$51.14 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$44.44. So it may not shed much light on insider confidence at current levels.
Happily, we note that in the last year insiders paid US$137k for 2.76k shares. But insiders sold 23.35k shares worth US$1.1m. Over the last year we saw more insider selling of Stock Yards Bancorp shares, than buying. 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insiders At Stock Yards Bancorp Have Sold Stock Recently
We've seen more insider selling than insider buying at Stock Yards Bancorp recently. We note insiders cashed in US$631k worth of shares. Meanwhile insider Allison Donovan bought US$7.6k worth. We don't view these transactions as a positive sign.
Does Stock Yards Bancorp Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Stock Yards Bancorp insiders own 8.2% of the company, worth about US$107m. 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 Stock Yards Bancorp Insiders?
The insider sales have outweighed the insider buying, at Stock Yards Bancorp, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Stock Yards Bancorp is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 2 warning signs for Stock Yards Bancorp (1 is a bit concerning!) and we strongly recommend you look at these before investing.
But note: Stock Yards Bancorp 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.