MD and Chief Technology & Information Officer Greg Gates Sold A Bunch Of Shares In LPL Financial Holdings

Some LPL Financial Holdings Inc. (NASDAQ:LPLA) shareholders may be a little concerned to see that the MD and Chief Technology & Information Officer, Greg Gates, recently sold a substantial US$3.0m worth of stock at a price of US$266 per share. That sale reduced their total holding by 46% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for LPL Financial Holdings

LPL Financial Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Greg Gates is the biggest insider sale of LPL Financial Holdings shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$268. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 46% of Greg Gates's stake.

In total, LPL Financial Holdings insiders sold more 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. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of LPL Financial Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that LPL Financial Holdings insiders own 0.7% of the company, worth about US$148m. 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 Does This Data Suggest About LPL Financial Holdings Insiders?

An insider sold LPL Financial Holdings shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that LPL Financial Holdings is growing earnings. 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 LPL Financial Holdings. For instance, we've identified 3 warning signs for LPL Financial Holdings (2 are potentially serious) 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.