Yahoo Finance Wintrust Financial Corporation (NASDAQ:WTFC) insiders recover some losses but still US$40k away from matching original investment
Insiders who bought US$456k worth of Wintrust Financial Corporation (NASDAQ:WTFC) stock in the last year recovered part of their losses as the stock rose by 3.8% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$40k since the time of purchase.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Wintrust Financial
The Last 12 Months Of Insider Transactions At Wintrust Financial
Over the last year, we can see that the biggest insider purchase was by Independent Chairman of the Board H. Hackett for US$456k worth of shares, at about US$91.23 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$83.25). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was H. Hackett.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Wintrust Financial Insiders Are Selling The Stock
The last quarter saw substantial insider selling of Wintrust Financial shares. Specifically, Executive VP & CFO David Stoehr ditched US$205k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Insider Ownership Of Wintrust Financial
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. It appears that Wintrust Financial insiders own 1.3% of the company, worth about US$64m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Wintrust Financial Insiders?
An insider hasn't bought Wintrust Financial stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. And insiders do own shares. So the recent selling doesn't worry us too much. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Wintrust Financial has 2 warning signs we think you should be aware of.
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, but not derivative transactions.
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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.
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