Have Raymond James Financial Insiders Been Selling Stock?

Some Raymond James Financial, Inc. (NYSE:RJF) shareholders may be a little concerned to see that the President of Global Equities & Investment Banking, James Bunn, recently sold a substantial US$1.4m worth of stock at a price of US$124 per share. That sale reduced their total holding by 18% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Raymond James Financial

The Last 12 Months Of Insider Transactions At Raymond James Financial

The Chairman & CEO, Paul Reilly, made the biggest insider sale in the last 12 months. That single transaction was for US$5.0m worth of shares at a price of US$104 each. That means that even when the share price was below the current price of US$125, 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 15% of Paul Reilly's stake.

Over the last year we saw more insider selling of Raymond James Financial 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!

I will like Raymond James Financial better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Raymond James Financial Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Raymond James Financial insiders own 9.9% of the company, worth about US$2.6b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Raymond James Financial Tell Us?

Unfortunately, there has been more insider selling of Raymond James Financial stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Raymond James Financial makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Raymond James Financial.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.