Have Live Oak Bancshares Insiders Been Selling Stock?

Anyone interested in Live Oak Bancshares, Inc. (NYSE:LOB) should probably be aware that the Chief Risk Officer & General Counsel, Gregory Seward, recently divested US$470k worth of shares in the company, at an average price of US$47.02 each. That sale was 10% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for Live Oak Bancshares

The Last 12 Months Of Insider Transactions At Live Oak Bancshares

In the last twelve months, the biggest single sale by an insider was when the Head of Commercial Banking, Steven Smits, sold US$897k worth of shares at a price of US$36.25 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$48.07. 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 15% of Steven Smits's holding.

All up, insiders sold more shares in Live Oak Bancshares than they bought, over 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!

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Live Oak Bancshares insiders own 25% of the company, currently worth about US$520m 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.

What Might The Insider Transactions At Live Oak Bancshares Tell Us?

The insider sales have outweighed the insider buying, at Live Oak Bancshares, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Live Oak Bancshares is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Live Oak Bancshares and understanding it should be part of your investment process.

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.