We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell SVB Financial Group (NASDAQ:SIVB), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We don’t think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
The Last 12 Months Of Insider Transactions At SVB Financial Group
Chief Human Resources Officer Christopher Edmonds-Waters made the biggest insider sale in the last 12 months. That single transaction was for US$739k worth of shares at a price of US$319 each. While the sale doesn’t make us feel confident, we do note it was conducted at a price well above the current share price, which is US$231. So it may not tell us anything about how insiders feel about the current share price.
In the last twelve months insiders netted US$2.6m for 8.68k shares sold. Over the last year we saw more insider selling of SVB Financial Group shares, than buying. The average sell price was around US$295. We are not joyful about insider selling. However, we do note that the average sale price was significantly higher than the current share price (which is US$231). The chart below shows insider transactions (by 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 alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders at SVB Financial Group Have Sold Stock Recently
The last quarter saw substantial insider selling of SVB Financial Group shares. In total, Christopher Edmonds-Waters dumped US$414k worth of shares in that time, and we didn’t record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Does SVB Financial Group Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. SVB Financial Group insiders own about US$62m worth of shares. That equates to 0.5% of the company. 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 Does This Data Suggest About SVB Financial Group Insiders?
An insider hasn’t bought SVB Financial Group stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn’t show any insider buying. But since SVB Financial Group is profitable and growing, we’re not too worried by this. Insiders own shares, but we’re still pretty cautious, given the history of sales. We’d think twice before buying! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for SVB Financial Group.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.