Anyone interested in Cadence bank (NYSE: CADE) should probably know that Chief Information Officer Thomas Clark recently sold $485,000 worth of company stock, at an average price of $27.46 each. Equally important, this sale actually reduced their stake by 99%, which makes us hardly optimistic about the stock.
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The last 12 months of insider trading at Cadence Bank
In fact, the recent sale by Thomas Clark was the largest sale of Cadence Bank shares by an insider in the past twelve months, according to our records. This means that an insider was selling shares at a price slightly lower than the current price (US$28.79). We generally consider it negative if insiders sold, especially if they did below the current price, as this implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can’t be sure if it means insiders believe the stock is fully priced, so it’s only a weak sign. It should be noted that this sale involved 99% of Thomas Clark’s stake.
In total, insiders sold more shares of Cadence Bank than they bought in the past year. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. By clicking on the graph below, you will be able to see the precise detail of each insider trade!
If you’re like me, then you not want to miss this free list of growing companies insiders are buying.
Does Cadence Bank boast of high insider ownership?
For an ordinary shareholder, it is worth checking how many shares are held by company insiders. High insider participation often makes company management more concerned with the interests of shareholders. It appears that insiders at Cadence Bank own 1.6% of the company, worth around $84 million. This level of insider ownership is good, but just short of being particularly noteworthy. This certainly suggests a reasonable degree of alignment.
So what do Cadence Bank’s insider trades indicate?
Insiders recently sold shares of Cadence Bank, but did not buy any. Despite some insider buying, the longer-term picture doesn’t make us much more positive. Insiders hold shares, but we remain quite cautious, given the history of sales. We would exercise caution before purchasing! So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. For example – Cadence Bank has 1 warning sign we think you should know.
If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of attractive companies, which have a high return on equity and low debt.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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