Whilst it may not be a huge deal, we thought it was good to see that the Silvergate Capital Corporation (NYSE:SI) Independent Chairman, Michael Lempres, recently bought US$56k worth of stock, for US$112 per share. That purchase might not be huge but it did increase their holding by 13%.
Silvergate Capital Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Derek Eisele, for US$6.0m worth of shares, at about US$202 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$127). So it may not shed much light on insider confidence at current levels.
In total, Silvergate Capital insiders sold more than they bought over the last year. 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!
I will like Silvergate Capital 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 Silvergate Capital Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Silvergate Capital insiders own about US$91m worth of shares. That equates to 2.3% of the company. 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 Does This Data Suggest About Silvergate Capital Insiders?
It's certainly positive to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The more recent transactions are a positive, but Silvergate Capital insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. In short they are likely aligned with shareholders. 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. In terms of investment risks, we've identified 2 warning signs with Silvergate Capital and understanding these should be part of your investment process.
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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