We wouldn't blame United Community Banks, Inc. (NYSE:UCB) shareholders if they were a little worried about the fact that Jefferson Harralson, the Executive VP & CFO recently netted about US$885k selling shares at an average price of US$35.41. Probably the most concerning element of the whole transaction is that the disposal amounted to 54% of their entire holding.

The Last 12 Months Of Insider Transactions At United Community Banks

Notably, that recent sale by Jefferson Harralson is the biggest insider sale of United Community Banks shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$35.44). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it 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 does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was 54% of Jefferson Harralson's holding.

Insiders in United Community Banks didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like United Community Banks better if I see some big insider buys.

Insider Ownership Of United Community Banks

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that United Community Banks insiders own 0.5% of the company, worth about US$21m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At United Community Banks Tell Us?

An insider hasn't bought United Community Banks stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, United Community Banks makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, United Community Banks has 2 warning signs (and 1 which is significant) we think you should know about.

Of course United Community Banks may not be the best stock to buy. So you may wish to see this free collection of high quality 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.