Provident Financial Services Independent Director Edward Leppert Sells 46% Of Holding

Some Provident Financial Services, Inc. (NYSE:PFS) shareholders may be a little concerned to see that the Independent Director, Edward Leppert, recently sold a substantial US$1.4m worth of stock at a price of US$20.63 per share. That's a big disposal, and it decreased their holding size by 46%, which is notable but not too bad.

Check out our latest analysis for Provident Financial Services

The Last 12 Months Of Insider Transactions At Provident Financial Services

Notably, that recent sale by Edward Leppert is the biggest insider sale of Provident Financial Services shares that we've seen in the last year. That means that even when the share price was below the current price of US$21.33, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 46% of Edward Leppert's holding.

In the last twelve months insiders purchased 1.96k shares for US$31k. But insiders sold 126.70k shares worth US$2.6m. All up, insiders sold more shares in Provident Financial Services than they bought, 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

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 Provident Financial Services

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. Insiders own 3.3% of Provident Financial Services shares, worth about US$92m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Provident Financial Services Tell Us?

Insiders sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we've identified 5 warning signs for Provident Financial Services (1 makes us a bit uncomfortable) you should be aware of.

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.