Stock Yards Bancorp, Inc.'s (NASDAQ:SYBT) stock price has dropped 3.3% in the previous week, but insiders who sold US$3.2m in stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of US$55.57 is still lower than the current share price.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Stock Yards Bancorp Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Director, David Heintzman, for US$659k worth of shares, at about US$66.06 per share. So we know that an insider sold shares at around the present share price of US$61.75. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Over the last year, we can see that insiders have bought 1.79k shares worth US$101k. But insiders sold 58.46k shares worth US$3.2m. All up, insiders sold more shares in Stock Yards Bancorp than they bought, 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!
I will like Stock Yards Bancorp better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Stock Yards Bancorp Insiders Are Selling The Stock
There was substantially more insider selling, than buying, of Stock Yards Bancorp shares over the last three months. In that time, insiders dumped US$763k worth of shares. On the other hand we note insiders bought US$49k worth of shares. Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Stock Yards Bancorp insiders own 3.4% of the company, worth about US$55m. 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 Stock Yards Bancorp Insiders?
The insider sales have outweighed the insider buying, at Stock Yards Bancorp, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Stock Yards Bancorp is growing earnings. 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 2 warning signs for Stock Yards Bancorp and we suggest you have a look.
Of course Stock Yards Bancorp 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, but not derivative transactions.
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.