Have Bankwell Financial Group Insiders Been Selling Stock?

Anyone interested in Bankwell Financial Group, Inc. (NASDAQ:BWFG) should probably be aware that the Executive VP & Chief Credit Officer, Christine Chivily, recently divested US$150k worth of shares in the company, at an average price of US$23.60 each. The eyebrow raising move amounted to a reduction of 18% in their holding.

Check out our latest analysis for Bankwell Financial Group

Bankwell Financial Group Insider Transactions Over The Last Year

Notably, that recent sale by Christine Chivily is the biggest insider sale of Bankwell Financial Group 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$24.16. 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. This single sale was just 18% of Christine Chivily's stake.

In the last twelve months insiders purchased 14.95k shares for US$391k. On the other hand they divested 12.62k shares, for US$313k. In total, Bankwell Financial Group insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Bankwell Financial Group

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Bankwell Financial Group insiders own about US$27m worth of shares. That equates to 14% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Bankwell Financial Group Insiders?

The stark truth for Bankwell Financial Group is that there has been more insider selling than insider buying in the last three months. On the other hand, the insider transactions over the last year are encouraging. And insiders do own shares. So we're not overly bothered by recent selling. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 3 warning signs for Bankwell Financial Group (1 makes us a bit uncomfortable!) that we believe deserve your full attention.

But note: Bankwell Financial Group 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 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.