We wouldn't blame U.S. Bancorp (NYSE:USB) shareholders if they were a little worried about the fact that Stephen Philipson, the Vice Chair & Head of Wealth recently netted about US$2.3m selling shares at an average price of US$63.08. That sale reduced their total holding by 33% which is hardly insignificant, but far from the worst we've seen.

The Last 12 Months Of Insider Transactions At U.S. Bancorp

In fact, the recent sale by Stephen Philipson was the biggest sale of U.S. Bancorp shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$63.33. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 33% of Stephen Philipson's stake.

U.S. Bancorp insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of U.S. Bancorp

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. U.S. Bancorp insiders own 0.2% of the company, currently worth about US$205m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At U.S. Bancorp Tell Us?

Insiders sold U.S. Bancorp shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since U.S. Bancorp 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 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 U.S. Bancorp and understanding it should be part of your investment process.

But note: U.S. 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.