Don't Ignore The Fact That This Insider Just Sold Some Shares In Byline Bancorp, Inc. (NYSE:BY)

By
Simply Wall St
Published
August 17, 2020
NYSE:BY

Anyone interested in Byline Bancorp, Inc. (NYSE:BY) should probably be aware that a company insider, Owen Beacom, recently divested US$188k worth of shares in the company, at an average price of US$13.78 each. That sale was 28% of their holding, so it does make us raise an eyebrow.

See our latest analysis for Byline Bancorp

The Last 12 Months Of Insider Transactions At Byline Bancorp

In fact, the recent sale by Owen Beacom was the biggest sale of Byline Bancorp shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$13.46. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Over the last year, we can see that insiders have bought 11.60k shares worth US$159k. On the other hand they divested 14.73k shares, for US$200k. All up, insiders sold more shares in Byline Bancorp 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. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:BY Insider Trading Volume August 17th 2020

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Byline Bancorp insiders own about US$203m worth of shares (which is 39% 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 Byline Bancorp Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Byline Bancorp stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 3 warning signs for Byline Bancorp (1 is significant!) and we strongly recommend you look at these before investing.

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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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