We wouldn't blame Stock Yards Bancorp, Inc. (NASDAQ:SYBT) shareholders if they were a little worried about the fact that Laura Wells, a company insider, recently netted about US$589k selling shares at an average price of US$86.29. That's a big disposal, and it decreased their holding size by 42%, which is notable but not too bad.

The Last 12 Months Of Insider Transactions At Stock Yards Bancorp

Notably, that recent sale by Laura Wells is the biggest insider sale of Stock Yards Bancorp shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$85.43. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In the last twelve months insiders purchased 2.10k shares for US$140k. But insiders sold 1.27m shares worth US$1.2m. All up, insiders sold more shares in Stock Yards Bancorp than they bought, over the last year. 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!

I will like Stock Yards Bancorp better if I see some big insider buys.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Stock Yards Bancorp insiders own 6.8% of the company, currently worth about US$181m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Stock Yards Bancorp Tell Us?

Insiders haven't bought Stock Yards Bancorp stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Stock Yards Bancorp is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Stock Yards Bancorp.

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.