This Insider Has Just Sold Shares In Amalgamated Financial Corp. (NASDAQ:AMAL)

By
Simply Wall St
Published
November 13, 2021
NasdaqGM:AMAL
Source: Shutterstock

Anyone interested in Amalgamated Financial Corp. (NASDAQ:AMAL) should probably be aware that the Independent Director, Mark Finser, recently divested US$118k worth of shares in the company, at an average price of US$19.60 each. That sale was 17% of their holding, so it does make us raise an eyebrow.

See our latest analysis for Amalgamated Financial

The Last 12 Months Of Insider Transactions At Amalgamated Financial

In the last twelve months, the biggest single sale by an insider was when the insider, Keith Mestrich, sold US$953k worth of shares at a price of US$17.25 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$19.13. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. It is worth noting that this sale was 89% of Keith Mestrich's holding.

In the last year Amalgamated Financial insiders didn't buy any company stock. 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!

insider-trading-volume
NasdaqGM:AMAL Insider Trading Volume November 14th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Amalgamated Financial

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Based on our data, Amalgamated Financial insiders have about 0.5% of the stock, worth approximately US$2.8m. We consider this fairly low insider ownership.

So What Do The Amalgamated Financial Insider Transactions Indicate?

Insiders sold Amalgamated Financial shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Amalgamated Financial is profitable and growing, we're not too worried by this. When you consider that most companies have higher levels of insider ownership, we're a little wary. We'd certainly practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Amalgamated Financial. Every company has risks, and we've spotted 3 warning signs for Amalgamated Financial you should know about.

But note: Amalgamated Financial 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, but not derivative transactions.

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