Stock Analysis

Regions Financial Corporation's (NYSE:RF)) market cap declines to US$19b but insiders who sold US$613k stock were able to hedge their losses

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NYSE:RF
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By selling US$613k worth of Regions Financial Corporation (NYSE:RF) stock at an average sell price of US$24.50 over the last year, insiders seemed to have made the most of their holdings. The company's market valuation decreased by US$757m after the stock price dropped 3.9% over the past week, but insiders were spared from painful losses.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Before we look at these insider transactions though, you might like to know that our analysis indicates that RF is potentially undervalued!

The Last 12 Months Of Insider Transactions At Regions Financial

The insider, Amala Duggirala, made the biggest insider sale in the last 12 months. That single transaction was for US$613k worth of shares at a price of US$24.50 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$20.07. So it is hard to draw any strong conclusion from it. Amala Duggirala was the only individual insider to sell over the last year.

The chart below shows insider transactions (by companies and individuals) over the last year. 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:RF Insider Trading Volume October 2nd 2022

I will like Regions Financial 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 Regions Financial

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 0.3% of Regions Financial shares, worth about US$47m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Regions Financial Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Regions Financial insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Regions Financial.

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, but not derivative transactions.

What are the risks and opportunities for Regions Financial?

Regions Financial Corporation, a financial holding company, provides banking and bank-related services to individual and corporate customers.

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Rewards

  • Trading at 55% below our estimate of its fair value

  • Earnings are forecast to grow 4.31% per year

Risks

No risks detected for RF from our risks checks.

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Share Price

Market Cap

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About NYSE:RF

Regions Financial

Regions Financial Corporation, a financial holding company, provides banking and bank-related services to individual and corporate customers.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation4
Future Growth1
Past Performance2
Financial Health6
Dividends5

Read more about these checks in the individual report sections or in our analysis model.

Flawless balance sheet established dividend payer.