Don't Ignore The Fact That This Insider Just Sold Some Shares In M&T Bank Corporation (NYSE:MTB)

By
Simply Wall St
Published
May 21, 2022
NYSE:MTB
Source: Shutterstock

We wouldn't blame M&T Bank Corporation (NYSE:MTB) shareholders if they were a little worried about the fact that Kevin Pearson, the Vice Chairman recently netted about US$849k selling shares at an average price of US$170. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 9.3%.

Check out our latest analysis for M&T Bank

M&T Bank Insider Transactions Over The Last Year

In fact, the recent sale by Kevin Pearson was the biggest sale of M&T Bank shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$163. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

M&T Bank insiders didn't buy any shares over the last year. 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!

insider-trading-volume
NYSE:MTB Insider Trading Volume May 21st 2022

I will like M&T Bank better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of M&T Bank

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that M&T Bank insiders own 0.5% of the company, worth about US$141m. 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 M&T Bank Insiders?

An insider hasn't bought M&T Bank stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since M&T Bank 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. At Simply Wall St, we found 2 warning signs for M&T Bank 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, but not derivative transactions.

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