Have UMB Financial Insiders Been Selling Stock?

We wouldn't blame UMB Financial Corporation (NASDAQ:UMBF) shareholders if they were a little worried about the fact that J. Kemper, the Chairman & CEO recently netted about US$992k selling shares at an average price of US$113. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.5%.

Check out our latest analysis for UMB Financial

UMB Financial Insider Transactions Over The Last Year

Notably, that recent sale by Chairman & CEO J. Kemper was not the only time they sold UMB Financial shares this year. Earlier in the year, they fetched US$125 per share in a -US$3.0m sale. So what is clear is that an insider saw fit to sell at around the current price of US$116. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year, we can see that insiders have bought 1.40k shares worth US$144k. But they sold 284.67k shares for US$28m. All up, insiders sold more shares in UMB Financial than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like UMB 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.

Does UMB Financial Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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's great to see that UMB Financial insiders own 3.1% of the company, worth about US$267m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At UMB Financial Tell Us?

Insiders haven't bought UMB Financial stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that UMB Financial is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that UMB Financial has 2 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

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 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.