Multiple Insiders Sold Provident Financial Services Shares Presenting Weak Signs For Investors

Quite a few Provident Financial Services, Inc. (NYSE:PFS) insiders sold their shares over the past year, which may be a cause for concern. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Provident Financial Services

The Last 12 Months Of Insider Transactions At Provident Financial Services

Over the last year, we can see that the biggest insider sale was by the insider, Vito Giannola, for US$147k worth of shares, at about US$14.67 per share. That means that an insider was selling shares at around the current price of US$13.64. 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.

Over the last year, we can see that insiders have bought 12.95k shares worth US$203k. But they sold 16.00k shares for US$254k. Over the last year we saw more insider selling of Provident Financial Services shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Provident Financial Services better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Provident Financial Services Insiders Are Selling The Stock

There was substantially more insider selling, than buying, of Provident Financial Services shares over the last three months. We note Independent Director Robert McNerney cashed in US$89k worth of shares. Meanwhile CEO & President Provident Protection Plus George Lista bought US$17k worth. We don't view these transactions as a positive sign.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Provident Financial Services insiders own 4.3% of the company, worth about US$45m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Provident Financial Services Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Provident Financial Services stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Provident Financial Services.

But note: Provident Financial Services may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.