Don't Ignore The Insider Selling In Stellar Bancorp

Some Stellar Bancorp, Inc. (NYSE:STEL) shareholders may be a little concerned to see that the Independent Director, William Wilson, recently sold a substantial US$727k worth of stock at a price of US$30.28 per share. That's a big disposal, and it decreased their holding size by 22%, which is notable but not too bad.

Check out our latest analysis for Stellar Bancorp

The Last 12 Months Of Insider Transactions At Stellar Bancorp

Notably, that recent sale by William Wilson is the biggest insider sale of Stellar Bancorp shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$29.92. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Insiders in Stellar Bancorp 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership

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. We usually like to see fairly high levels of insider ownership. It's great to see that Stellar Bancorp insiders own 9.5% of the company, worth about US$152m. 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 Do The Stellar Bancorp Insider Transactions Indicate?

Insiders 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 Stellar Bancorp is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Stellar Bancorp. At Simply Wall St, we've found that Stellar Bancorp has 3 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.

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.