Senior EVP & General Counsel Of Bank of New York Mellon Sold 54% Of Their Shares

Some The Bank of New York Mellon Corporation ( NYSE:BK ) shareholders may be a little concerned to see that the Senior EVP & General Counsel, Kevin McCarthy, recently sold a substantial US$1.9m worth of stock at a price of US$76.31 per share. That diminished their holding by a very significant 54%, which arguably implies a strong desire to reallocate capital.

Check out our latest analysis for Bank of New York Mellon

The Last 12 Months Of Insider Transactions At Bank of New York Mellon

The Senior Executive VP & Global Head of Wealth, Catherine Keating, made the biggest insider sale in the last 12 months. That single transaction was for US$3.0m worth of shares at a price of US$54.88 each. That means that an insider was selling shares at slightly below the current price (US$76.67). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 77% of Catherine Keating's stake.

Insiders in Bank of New York Mellon 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership Of Bank of New York Mellon

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Bank of New York Mellon insiders own 0.2% of the company, worth about US$95m. 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 Bank of New York Mellon Insiders?

Insiders sold Bank of New York Mellon shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Bank of New York Mellon makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bank of New York Mellon. Case in point: We've spotted 1 warning sign for Bank of New York Mellon you should be aware of.

But note: Bank of New York Mellon may not be the best stock to buy . So take a peek at this free list of interesting companies with high ROE 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 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.