Anyone interested in Fifth Third Bancorp (NASDAQ:FITB) should probably be aware that a company insider, Kevin Lavender, recently divested US$219k worth of shares in the company, at an average price of US$25.81 each. The eyebrow raising move amounted to a reduction of 11% in their holding.
The Last 12 Months Of Insider Transactions At Fifth Third Bancorp
Over the last year, we can see that the biggest insider purchase was by Independent Director Katherine Blackburn for US$994k worth of shares, at about US$16.90 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$26.68. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Over the last year, we can see that insiders have bought 65.10k shares worth US$1.1m. But insiders sold 26.14k shares worth US$656k. In the last twelve months there was more buying than selling by Fifth Third Bancorp insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Fifth Third Bancorp is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.4% of Fifth Third Bancorp shares, worth about US$80m. 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 Fifth Third Bancorp Insider Transactions Indicate?
Insiders sold Fifth Third Bancorp shares recently, but they didn't buy any. In contrast, they appear keener if you look at the last twelve months. We like that insiders own a fair amount of the company. So the recent selling doesn't worry us too much. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fifth Third Bancorp. For example - Fifth Third Bancorp has 2 warning signs we think you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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This article by Simply Wall St is general in nature. 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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