SLM Executive VP & COO Kerri Palmer Sells 67% Of Holding

We wouldn't blame SLM Corporation (NASDAQ:SLM) shareholders if they were a little worried about the fact that Kerri Palmer, the Executive VP & COO recently netted about US$1.8m selling shares at an average price of US$32.21. Probably the most concerning element of the whole transaction is that the disposal amounted to 67% of their entire holding.

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The Last 12 Months Of Insider Transactions At SLM

In fact, the recent sale by Kerri Palmer was the biggest sale of SLM shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$31.23. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year we saw more insider selling of SLM shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for SLM

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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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that SLM insiders own 1.0% of the company, worth about US$66m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About SLM Insiders?

Insiders sold SLM shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that SLM has 4 warning signs (2 are a bit concerning!) that deserve your attention before going any further with your analysis.

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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.