Have Pathward Financial Insiders Been Selling Stock?

Anyone interested in Pathward Financial, Inc. (NASDAQ:CASH) should probably be aware that the President, Anthony Sharett, recently divested US$206k worth of shares in the company, at an average price of US$66.40 each. On the bright side, that sale was only 9.4% of their holding, so we doubt it's very meaningful, on its own.

View our latest analysis for Pathward Financial

Pathward Financial Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Glen Herrick, for US$708k worth of shares, at about US$50.50 per share. That means that an insider was selling shares at slightly below the current price (US$67.89). 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. 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 13% of Glen Herrick's stake.

Insiders in Pathward Financial didn't buy any shares in the last year. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Pathward 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 appears that Pathward Financial insiders own 1.5% of the company, worth about US$26m. 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 Do The Pathward Financial Insider Transactions Indicate?

Insiders sold Pathward 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 Pathward Financial is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. 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. You'd be interested to know, that we found 1 warning sign for Pathward Financial and we suggest you have a look.

Of course Pathward Financial 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.