Stock Analysis

Mary Jo Herseth Is The Independent Director of Byline Bancorp, Inc. (NYSE:BY) And They Just Picked Up 141% More Shares

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NYSE:BY
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Even if it's not a huge purchase, we think it was good to see that Mary Jo Herseth, the Independent Director of Byline Bancorp, Inc. (NYSE:BY) recently shelled out US$86k to buy stock, at US$18.90 per share. Even though that isn't a massive buy, it did increase their holding by 141%, which is arguably a good sign.

See our latest analysis for Byline Bancorp

The Last 12 Months Of Insider Transactions At Byline Bancorp

Over the last year, we can see that the biggest insider sale was by the , Owen Beacom, for US$188k worth of shares, at about US$13.78 per share. That means that even when the share price was below the current price of US$19.50, an insider wanted to cash in some shares. 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. It is worth noting that this sale was only 28% of Owen Beacom's holding.

Happily, we note that in the last year insiders paid US$226k for 15.18k shares. But they sold 18.78k shares for US$256k. Over the last year we saw more insider selling of Byline Bancorp shares, than buying. 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 February 13th 2021

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?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Byline Bancorp insiders own about US$293m worth of shares (which is 39% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Byline Bancorp Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. The recent buying by an insider , along with high insider ownership, suggest that Byline Bancorp insiders are fairly aligned, and optimistic. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Byline Bancorp and we suggest you have a look.

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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What are the risks and opportunities for Byline Bancorp?

Byline Bancorp, Inc. operates as the bank holding company for Byline Bank that provides various banking products and services for small and medium sized businesses, commercial real estate and financial sponsors, and consumers in the United States.

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Rewards

  • Trading at 40.2% below our estimate of its fair value

  • Earnings are forecast to grow 12.2% per year

Risks

No risks detected for BY from our risks checks.

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