Trade Alert: Chief Accounting Officer Of Live Oak Bancshares John Sutherland Has Sold Stock

We wouldn't blame Live Oak Bancshares, Inc. (NYSE:LOB) shareholders if they were a little worried about the fact that John Sutherland, the Chief Accounting Officer recently netted about US$860k selling shares at an average price of US$43.00. That sale reduced their total holding by 43% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Live Oak Bancshares

The Last 12 Months Of Insider Transactions At Live Oak Bancshares

Over the last year, we can see that the biggest insider sale was by the Head of Commercial Banking, Steven Smits, for US$897k worth of shares, at about 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$42.12. 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. This single sale was just 15% of Steven Smits's stake.

Insiders in Live Oak Bancshares didn't buy any shares in 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!

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 Live Oak Bancshares

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Live Oak Bancshares insiders own 25% of the company, currently worth about US$470m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Live Oak Bancshares Insiders?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But since Live Oak Bancshares is profitable and growing, we're not too worried by this. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Live Oak Bancshares.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.