We wouldn't blame Byline Bancorp, Inc. (NYSE:BY) shareholders if they were a little worried about the fact that Antonio Del Valle Perochena, the Lead Independent Director recently netted about US$12m selling shares at an average price of US$39.10. However, that sale only accounted for 2.5% of their holding, so arguably it doesn't say much about their conviction.

Byline Bancorp Insider Transactions Over The Last Year

In fact, the recent sale by Antonio Del Valle Perochena was the biggest sale of Byline Bancorp shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$39.23, an insider wanted to cash in some shares. 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. This single sale was just 2.5% of Antonio Del Valle Perochena's stake.

In the last twelve months insiders purchased 1.38k shares for US$44k. On the other hand they divested 632.33k shares, for US$24m. All up, insiders sold more shares in Byline Bancorp than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Byline Bancorp insiders own about US$509m worth of shares (which is 29% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Byline Bancorp Insiders?

Insiders haven't bought Byline Bancorp stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Byline Bancorp is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Byline Bancorp.

But note: Byline Bancorp may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.