Anyone interested in Stellar Bancorp, Inc. (NYSE:STEL) should probably be aware that the Senior EVP & CFO, Paul Egge, recently divested US$188k worth of shares in the company, at an average price of US$27.98 each. The eyebrow raising move amounted to a reduction of 10% in their holding.
Stellar Bancorp Insider Transactions Over The Last Year
Notably, that recent sale by Paul Egge is the biggest insider sale of Stellar Bancorp shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$26.67. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Insiders in Stellar Bancorp didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership Of Stellar Bancorp
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Stellar Bancorp insiders own about US$139m worth of shares (which is 9.6% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Stellar Bancorp Insiders?
An insider hasn't bought Stellar Bancorp stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since Stellar Bancorp is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 3 warning signs for Stellar Bancorp (1 is a bit unpleasant!) that we believe deserve your full attention.
But note: Stellar 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.
