Some U.S. Bancorp (NYSE:USB) shareholders may be a little concerned to see that the Vice Chairman of Payment Services, Shailesh Kotwal, recently sold a substantial US$1.7m worth of stock at a price of US$49.74 per share. That sale reduced their total holding by 20% which is hardly insignificant, but far from the worst we've seen.

The Last 12 Months Of Insider Transactions At U.S. Bancorp

Notably, that recent sale by Shailesh Kotwal is the biggest insider sale of U.S. 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$48.03. 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.

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. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of U.S. Bancorp

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. U.S. Bancorp insiders own about US$149m worth of shares (which is 0.2% of the company). 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 U.S. Bancorp Insiders?

Insiders sold U.S. Bancorp shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of U.S. Bancorp.

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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.