Some The Bancorp, Inc. (NASDAQ:TBBK) shareholders may be a little concerned to see that the Executive VP & Chief Marketing Officer, Maria Wainwright, recently sold a substantial US$569k worth of stock at a price of US$50.08 per share. That diminished their holding by a very significant 55%, which arguably implies a strong desire to reallocate capital.
See our latest analysis for Bancorp
Over the last year, we can see that the biggest insider purchase was by Independent Director Matthew Cohn for US$683k worth of shares, at about US$38.32 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$50.26. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Over the last year, we can see that insiders have bought 88.08k shares worth US$3.3m. On the other hand they divested 66.27k shares, for US$2.8m. In the last twelve months there was more buying than selling by Bancorp insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Bancorp is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Bancorp insiders own 4.8% of the company, currently worth about US$117m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
The stark truth for Bancorp is that there has been more insider selling than insider buying in the last three months. In contrast, they appear keener if you look at the last twelve months. We are also comforted by the high levels of insider ownership. So we're not too bothered by recent selling. Of course, the future is what matters most. So if you are interested in Bancorp, you should check out this free report on analyst forecasts for the company.
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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