Have Citizens Financial Group Insiders Been Selling Stock?

Anyone interested in Citizens Financial Group, Inc. (NYSE:CFG) should probably be aware that the Executive VP, Craig Read, recently divested US$151k worth of shares in the company, at an average price of US$33.54 each. However, the silver lining is that the sale only reduced their total holding by 9.3%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for Citizens Financial Group

Citizens Financial Group Insider Transactions Over The Last Year

Notably, that recent sale by Craig Read is the biggest insider sale of Citizens Financial Group shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$34.24). 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. It is worth noting that this sale was only 9.3% of Craig Read's holding.

In the last twelve months insiders purchased 5.30k shares for US$144k. But insiders sold 4.51k shares worth US$151k. 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Citizens Financial Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. Citizens Financial Group insiders own 0.7% of the company, currently worth about US$108m based on the recent share price. 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 Does This Data Suggest About Citizens Financial Group Insiders?

An insider sold stock recently, but they haven't been buying. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Citizens Financial Group. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Citizens Financial Group.

Of course Citizens Financial Group 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.