We note that the Associated Banc-Corp (NYSE:ASB) Independent Chairman of the Board, John Williams, recently sold US$75k worth of stock for US$24.87 per share. It might not be a huge sale, but it did reduce their holding size 15%, hardly encouraging.
The Last 12 Months Of Insider Transactions At Associated Banc-Corp
Over the last year, we can see that the biggest insider sale was by the President, Andrew Harmening, for US$1.2m worth of shares, at about US$22.90 per share. That means that even when the share price was below the current price of US$25.18, 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 17% of Andrew Harmening's holding.
In total, Associated Banc-Corp insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Associated Banc-Corp better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of Associated Banc-Corp
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.2% of Associated Banc-Corp shares, worth about US$82m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Associated Banc-Corp Insider Transactions Indicate?
Insiders haven't bought Associated Banc-Corp stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But since Associated Banc-Corp is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! 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've found that Associated Banc-Corp has 2 warning signs (1 makes us a bit uncomfortable!) that deserve your attention before going any further with your analysis.
But note: Associated Banc-Corp 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. 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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