Don't Ignore The Insider Selling In Cullen/Frost Bankers

We'd be surprised if Cullen/Frost Bankers, Inc. (NYSE:CFR) shareholders haven't noticed that the Group Executive Vice President of Research & Strategy, Robert Berman, recently sold US$443k worth of stock at US$126 per share. However, the silver lining is that the sale only reduced their total holding by 7.3%, so we're hesitant to read anything much into it, on its own.

Check out our latest analysis for Cullen/Frost Bankers

The Last 12 Months Of Insider Transactions At Cullen/Frost Bankers

In fact, the recent sale by Robert Berman was the biggest sale of Cullen/Frost Bankers shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$144, 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 7.3% of Robert Berman's holding.

Robert Berman ditched 4.82k shares over the year. The average price per share was US$121. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Insider Ownership Of Cullen/Frost Bankers

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Cullen/Frost Bankers insiders own 2.5% of the company, worth about US$204m. 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 Cullen/Frost Bankers Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Cullen/Frost Bankers that deserve your attention before buying any shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.