Over the past year, many Stifel Financial Corp. (NYSE: SF) Insiders sold a large stake in the company, which may have sparked investor interest. When evaluating insider trading, it is usually more beneficial to know whether insiders are buying or selling, as the latter can be subject to many interpretations. However, if many insiders are selling, shareholders should investigate further.
While we don’t think shareholders should just follow insider trading, we believe it would be foolish to ignore insider trading altogether.
See our latest analysis for Stifel Financial
Stifel Financial insider trading in the past year
Co-Chairman and Head of Global Wealth Management James Zemlyak had the biggest insider sale in the past 12 months. This one-time transaction involved $ 6.0 million in shares at a price of $ 58.66 each. So it’s clear that an insider wanted to take money off the table, even below the current price of US $ 66.56. Generally, we find it disheartening when insiders sell below the current price, as it suggests they were happy with a lower valuation. However, while insider selling can be daunting at times, this is only a weak signal. We note that the biggest single sale was only 8.1% of James Zemlyak’s stake.
In the past year, insiders of Stifel Financial have not purchased any shares in the company. The chart below shows insider trading (by companies and individuals) over the past year. If you want to know exactly who sold, for how much and when, just click on the graph below!
I’d like Stifel Financial better if I see big insider buys. In the meantime, watch this free list of growing companies with significant and recent insider buying.
Insider ownership of Stifel Financial
Looking at the total insider stakes in a company can help you determine if they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will have an incentive to build the business for the long term. Stifel Financial insiders own around $ 246 million in shares (or 3.5% of the company). I like to see this level of insider ownership because it increases the chances that management is thinking in the best interests of shareholders.
So what does this data suggest about Stifel Financial Insiders?
There haven’t been any insider trading in the past three months, that doesn’t mean much. It’s great to see high levels of insider ownership, but looking back on last year, we’re not gaining the trust of Stifel Financial insiders selling. While we love to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. Every business has risks, and we have spotted 1 warning sign for Stifel Financial you should know.
But beware : Stifel Financial may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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