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In the last year, many The Bank of New York Mellon Corporation (NYSE:BK) insiders sold a substantial stake in the company which may have sparked shareholders' attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Bank of New York Mellon
Bank of New York Mellon Insider Transactions Over The Last Year
The Senior Executive VP & Global Head of Wealth, Catherine Keating, made the biggest insider sale in the last 12 months. That single transaction was for US$3.0m worth of shares at a price of US$54.88 each. That means that even when the share price was below the current price of US$75.94, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 77% of Catherine Keating's holding.
In the last year Bank of New York Mellon insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insider Ownership
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. We usually like to see fairly high levels of insider ownership. It appears that Bank of New York Mellon insiders own 0.1% 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 Do The Bank of New York Mellon Insider Transactions Indicate?
The fact that there have been no Bank of New York Mellon insider transactions recently certainly doesn't bother us. Still, the insider transactions at Bank of New York Mellon in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.