Some Associated Banc-Corp (NYSE:ASB) shareholders may be a little concerned to see that the Executive VP, Randall Erickson, recently sold a substantial US$845k worth of stock at a price of US$27.87 per share. That sale reduced their total holding by 18% which is hardly insignificant, but far from the worst we've seen.

The Last 12 Months Of Insider Transactions At Associated Banc-Corp

Notably, that recent sale by Randall Erickson is the biggest insider sale of Associated Banc-Corp shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$28.47). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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. We note that the biggest single sale was only 18% of Randall Erickson's holding.

In total, Associated Banc-Corp insiders sold more 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Associated Banc-Corp better if I see some big insider buys.

Insider Ownership Of Associated Banc-Corp

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Associated Banc-Corp insiders own 8.2% of the company, worth about US$386m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Associated Banc-Corp Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Associated Banc-Corp makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. In terms of investment risks, we've identified 1 warning sign with Associated Banc-Corp and understanding this should be part of your investment process.

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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.