Valley National Bancorp (NASDAQ:VLY) drops to US$13.90, yet insiders may have sold too early fetching only US$9.67 apiece

By
Simply Wall St
Published
November 28, 2021
NasdaqGS:VLY
Source: Shutterstock

Despite the fact that Valley National Bancorp's (NASDAQ:VLY) value has dropped 3.0% in the last week insiders who sold US$56k worth of stock in the past 12 months have had less success. Given that the average selling price of US$9.67 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Valley National Bancorp

Valley National Bancorp Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Graham Jones, sold US$56k worth of shares at a price of US$9.67 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$13.90. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. We note that the biggest single sale was only 0.7% of Graham Jones's holding. The only individual insider seller over the last year was Graham Jones.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGS:VLY Insider Trading Volume November 29th 2021

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Valley National Bancorp Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Valley National Bancorp insiders own about US$106m worth of shares (which is 1.9% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Valley National Bancorp Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Valley National Bancorp shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Valley National Bancorp insiders selling. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 1 warning sign for Valley National Bancorp that deserve your attention before buying any shares.

But note: Valley National Bancorp may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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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