We wouldn’t blame International Bancshares Corporation (NASDAQ:IBOC) shareholders if they were a little worried about the fact that Antonio Sanchez, the Director recently netted about US$6.6m selling shares at an average price of US$30.95. However, it’s crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 4.6%.
The Last 12 Months Of Insider Transactions At International Bancshares
Notably, that recent sale by Antonio Sanchez is the biggest insider sale of International Bancshares shares that we’ve seen in the last year. So it’s clear an insider wanted to take some cash off the table, even slightly below the current price of US$31.28. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. We note that the biggest single sale was only 4.6%of Antonio Sanchez’s holding.
Over the last year, we can see that insiders have bought 9.14k shares worth US$256k. But insiders sold 212.00k shares worth US$6.6m. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Insider Ownership of International Bancshares
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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’s great to see that International Bancshares insiders own 12% of the company, worth about US$230m. 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 International Bancshares Insider Transactions Indicate?
An insider sold stock recently, but they haven’t been buying. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. 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. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing International Bancshares. At Simply Wall St, we found 1 warning sign for International Bancshares that deserve your attention before buying any shares.
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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, but not derivative transactions.
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This article by Simply Wall St is general in nature. 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.
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