Don't Ignore The Fact That This Insider Just Sold Some Shares In Raymond James Financial, Inc. (NYSE:RJF)

By
Simply Wall St
Published
November 05, 2020
NYSE:RJF

We'd be surprised if Raymond James Financial, Inc. (NYSE:RJF) shareholders haven't noticed that the Executive Vice President of Technology & Operations, Bella Allaire, recently sold US$248k worth of stock at US$77.91 per share. On the bright side, that sale was only 5.4% of their holding, so we doubt it's very meaningful, on its own.

View our latest analysis for Raymond James Financial

Raymond James Financial Insider Transactions Over The Last Year

Notably, that recent sale by Executive Vice President of Technology & Operations Bella Allaire was not the only time they sold Raymond James Financial shares this year. They previously made an even bigger sale of -US$1.1m worth of shares at a price of US$101 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$77.09). So it may not shed much light on insider confidence at current levels.

Over the last year we saw more insider selling of Raymond James Financial shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:RJF Insider Trading Volume November 5th 2020

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 Raymond James Financial

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that Raymond James Financial insiders own 11% of the company, worth about US$1.2b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Raymond James Financial Insider Transactions Indicate?

An insider hasn't bought Raymond James Financial stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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 1 warning sign for Raymond James Financial that deserve your attention before buying any shares.

But note: Raymond James Financial 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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