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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, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Bank of New York Mellon Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Senior Executive VP & Global Head of Wealth, Catherine Keating, for US$5.1m worth of shares, at about US$77.31 per share. That means that an insider was selling shares at slightly below the current price (US$80.41). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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 100% of Catherine Keating's holding.
Insiders in Bank of New York Mellon didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Bank of New York Mellon
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Bank of New York Mellon Insiders Are Selling The Stock
The last quarter saw substantial insider selling of Bank of New York Mellon shares. Specifically, insiders ditched US$5.5m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Insider Ownership Of Bank of New York Mellon
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Bank of New York Mellon insiders own 0.1% of the company, worth about US$79m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.