Some Stifel Financial Corp. (NYSE:SF) shareholders may be a little concerned to see that the Co-Chairman of the Board, Thomas Weisel, recently sold a whopping US$1.8m worth of stock at a price of US$65.39 per share. That sale reduced their total holding by 40% which is hardly insignificant, but far from the worst we’ve seen.
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The Last 12 Months Of Insider Transactions At Stifel Financial
Notably, that recent sale by Thomas Weisel is the biggest insider sale of Stifel Financial shares that we’ve seen in the last year. So it’s clear an insider wanted to take some cash off the table, even below the current price of US$67.90. 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. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. This single sale was just 40% of Thomas Weisel’s stake.
In total, Stifel Financial insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Does Stifel Financial Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It’s great to see that Stifel Financial insiders own 3.8% of the company, worth about US$173m. 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 Stifel Financial Insiders?
Insiders sold Stifel Financial shares recently, but they didn’t buy any. And our longer term analysis of insider transactions didn’t bring confidence, either. On the plus side, Stifel Financial makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Stifel Financial.
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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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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