Anyone interested in Pathward Financial, Inc. (NASDAQ:CASH) should probably be aware that the Independent Director, Douglas Hajek, recently divested US$432k worth of shares in the company, at an average price of US$86.37 each. The eyebrow raising move amounted to a reduction of 29% in their holding.

The Last 12 Months Of Insider Transactions At Pathward Financial

In the last twelve months, the biggest single sale by an insider was when the CEO & Director, Brett Pharr, sold US$1.5m worth of shares at a price of US$93.88 per share. So we know that an insider sold shares at around the present share price of US$86.50. 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 year Pathward Financial insiders didn't buy any company stock. 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Pathward Financial

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 appears that Pathward Financial insiders own 1.4% of the company, worth about US$26m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Pathward Financial Insider Transactions Indicate?

Insiders haven't bought Pathward Financial stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But it is good to see that Pathward Financial is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. 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 Pathward Financial.

Of course Pathward Financial 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.