Have Pathward Financial Insiders Been Selling Stock?

We wouldn't blame Pathward Financial, Inc. (NASDAQ:CASH) shareholders if they were a little worried about the fact that Brett Pharr, the CEO & Director recently netted about US$809k selling shares at an average price of US$78.07. That's a big disposal, and it decreased their holding size by 16%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Pathward Financial

In fact, the recent sale by Brett Pharr was the biggest sale of Pathward Financial shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$79.37). 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. It is worth noting that this sale was only 16% of Brett Pharr's holding.

Insiders in Pathward Financial didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and 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!

Check out our latest analysis for Pathward Financial

I will like Pathward Financial better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Pathward Financial

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Pathward Financial insiders own 1.5% of the company, worth about US$27m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Pathward Financial Insider Transactions Indicate?

Insiders sold Pathward Financial shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Pathward Financial makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. 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. While conducting our analysis, we found that Pathward Financial has 1 warning sign and it would be unwise to ignore it.

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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 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.