Have Wintrust Financial Insiders Been Selling Stock?

We wouldn't blame Wintrust Financial Corporation (NASDAQ:WTFC) shareholders if they were a little worried about the fact that David Dykstra, the Vice Chairman & COO recently netted about US$1.2m selling shares at an average price of US$124. However, that sale only accounted for 6.4% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for Wintrust Financial

The Last 12 Months Of Insider Transactions At Wintrust Financial

In fact, the recent sale by Vice Chairman & COO David Dykstra was not their only sale of Wintrust Financial shares this year. Earlier in the year, they fetched US$115 per share in a -US$1.8m sale. That means that an insider was selling shares at slightly below the current price (US$124). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 9.9% of David Dykstra's stake.

In total, Wintrust Financial insiders sold more 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!

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Does Wintrust Financial Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Wintrust Financial insiders own about US$118m worth of shares (which is 1.4% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Wintrust Financial Tell Us?

Insiders sold Wintrust Financial shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Wintrust Financial makes money, and is growing profits. 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. While it's good to be aware of 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. For example - Wintrust Financial has 1 warning sign 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 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.