Trade Alert: Senior EVP & COO Of U.S. Bancorp Souheil Badran Has Sold Stock

We wouldn't blame U.S. Bancorp (NYSE:USB) shareholders if they were a little worried about the fact that Souheil Badran, the Senior EVP & COO recently netted about US$1.1m selling shares at an average price of US$46.34. That's a big disposal, and it decreased their holding size by 49%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At U.S. Bancorp

The insider, Shailesh Kotwal, made the biggest insider sale in the last 12 months. That single transaction was for US$1.7m worth of shares at a price of US$49.74 each. So what is clear is that an insider saw fit to sell at around the current price of US$46.29. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. 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).

Over the last year we saw more insider selling of U.S. Bancorp shares, than buying. 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!

View our latest analysis for U.S. Bancorp

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Does U.S. Bancorp Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that U.S. Bancorp insiders own 0.2% of the company, worth about US$140m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The U.S. Bancorp Insider Transactions Indicate?

Insiders haven't bought U.S. Bancorp stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that U.S. Bancorp is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. While conducting our analysis, we found that U.S. Bancorp has 1 warning sign and it would be unwise to ignore this.

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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.