Anyone interested in Bread Financial Holdings, Inc. (NYSE:BFH) should probably be aware that the Independent Director, Praniti Lakhwara, recently divested US$297k worth of shares in the company, at an average price of US$106 each. That sale was 50% of their holding, so it does make us raise an eyebrow.

Bread Financial Holdings Insider Transactions Over The Last Year

The insider, Roger Ballou, made the biggest insider sale in the last 12 months. That single transaction was for US$875k worth of shares at a price of US$90.32 each. That means that even when the share price was below the current price of US$111, 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 only 45% of Roger Ballou's holding.

In total, Bread Financial Holdings 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!

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Does Bread Financial Holdings Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Bread Financial Holdings insiders own about US$67m worth of shares. That equates to 1.6% of the company. 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 Does This Data Suggest About Bread Financial Holdings Insiders?

The insider sales have outweighed the insider buying, at Bread Financial Holdings, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Bread Financial Holdings is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Bread Financial Holdings has 2 warning signs (1 makes us a bit uncomfortable!) that deserve your attention before going any further with your analysis.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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 of direct interests only, but not derivative transactions or indirect interests.

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.