Byline Bancorp Insiders Placed Bullish Bets Worth US$2.17m

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Byline Bancorp, Inc. (NYSE:BY), it sends a favourable message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Byline Bancorp

The Last 12 Months Of Insider Transactions At Byline Bancorp

The President & Director, Alberto Paracchini, made the biggest insider sale in the last 12 months. That single transaction was for US$842k worth of shares at a price of US$21.08 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$23.74. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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. This single sale was just 17% of Alberto Paracchini's stake.

Over the last year, we can see that insiders have bought 104.37k shares worth US$2.2m. But they sold 72.29k shares for US$1.5m. Overall, Byline Bancorp insiders were net buyers during 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!

Byline Bancorp is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Have Byline Bancorp Insiders Traded Recently?

Over the last three months, we've seen a bit of insider buying at Byline Bancorp. Insiders bought US$6.7k worth of shares in that time. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.

Does Byline 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Byline Bancorp insiders own 34% of the company, currently worth about US$355m based on the recent share price. 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 Byline Bancorp Insider Transactions Indicate?

Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Byline Bancorp insiders feel good about the company's future. 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, Byline Bancorp has 2 warning signs (and 1 which is a bit concerning) we think you should know about.

But note: Byline 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com