Anyone interested in LendingClub Corporation (NYSE:LC) should probably be aware that the Chief Technology Officer, Bahman Koohestani, recently divested US$146k worth of shares in the company, at an average price of US$24.40 each. On the bright side, that sale was only 4.7% of their holding, so we doubt it's very meaningful, on its own.
The Last 12 Months Of Insider Transactions At LendingClub
Notably, that recent sale by Bahman Koohestani is the biggest insider sale of LendingClub shares that we've seen in the last year. That means that even when the share price was below the current price of US$26.06, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 4.7%of Bahman Koohestani's holding.
All up, insiders sold more shares in LendingClub 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of LendingClub
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. LendingClub insiders own about US$61m worth of shares. That equates to 2.4% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The LendingClub Insider Transactions Indicate?
Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. Recent sales exacerbate our caution arising from analysis of LendingClub insider transactions. But we do like the fact that insiders own a fair chunk of the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 2 warning signs for LendingClub that deserve your attention before buying any shares.
Of course LendingClub may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.
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