Trade Alert: Chief Financial Officer Of BankUnited Leslie Lunak Has Sold Stock

We wouldn't blame BankUnited, Inc. (NYSE:BKU) shareholders if they were a little worried about the fact that Leslie Lunak, the Chief Financial Officer recently netted about US$839k selling shares at an average price of US$33.56. That sale reduced their total holding by 30% which is hardly insignificant, but far from the worst we've seen.

Our free stock report includes 1 warning sign investors should be aware of before investing in BankUnited. Read for free now.

The Last 12 Months Of Insider Transactions At BankUnited

In fact, the recent sale by Leslie Lunak was the biggest sale of BankUnited shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$33.85). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 30% of Leslie Lunak's holding.

In total, BankUnited insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for BankUnited

I will like BankUnited 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.

Insider Ownership Of BankUnited

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. Insiders own 0.9% of BankUnited shares, worth about US$24m. 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 Do The BankUnited Insider Transactions Indicate?

Unfortunately, there has been more insider selling of BankUnited stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But since BankUnited 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're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with BankUnited and understanding it should be part of your investment process.

Of course BankUnited 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 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.