We wouldn't blame Amerant Bancorp Inc. (NASDAQ:AMTB) shareholders if they were a little worried about the fact that Millar Wilson, the Director recently netted about US$922k selling shares at an average price of US$29.97. That's a big disposal, and it decreased their holding size by 18%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Amerant Bancorp
Notably, that recent sale by Millar Wilson is the biggest insider sale of Amerant Bancorp 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$30.97. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. This single sale was just 18% of Millar Wilson's stake.
In the last twelve months insiders purchased 19.20k shares for US$337k. But they sold 30.77k shares for US$922k. 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Amerant Bancorp
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Amerant Bancorp insiders own 21% of the company, currently worth about US$247m based on the recent share price. 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 Amerant Bancorp Insiders?
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. On the plus side, Amerant Bancorp makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Amerant Bancorp.
Of course Amerant Bancorp may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
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.
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