We wouldn't blame Associated Banc-Corp (NYSE:ASB) shareholders if they were a little worried about the fact that Randall Erickson, the Executive VP recently netted about US$2.8m selling shares at an average price of US$30.76. That diminished their holding by a very significant 55%, which arguably implies a strong desire to reallocate capital.

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

In fact, the recent sale by Randall Erickson was the biggest sale of Associated Banc-Corp shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$31.75). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 55% of Randall Erickson's holding.

Associated Banc-Corp insiders didn't buy any shares 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!

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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. It's great to see that Associated Banc-Corp insiders own 8.1% of the company, worth about US$475m. 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 Does This Data Suggest About Associated Banc-Corp Insiders?

Insiders sold Associated Banc-Corp shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Associated Banc-Corp is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. 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.