We’d be surprised if Peapack-Gladstone Financial Corporation (NASDAQ:PGC) shareholders haven’t noticed that the Senior EVP & President of Peapack Private Wealth Management, John Babcock, recently sold US$181k worth of stock at US$30.20 per share. However, the silver lining is that the sale only reduced their total holding by 7.7%, so we’re hesitant to read anything much into it, on its own.
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Peapack-Gladstone Financial Insider Transactions Over The Last Year
In fact, the recent sale by John Babcock was the biggest sale of Peapack-Gladstone Financial shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$29.30. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn’t a major concern, though it’s hardly a good sign.
Over the last year, we can see that insiders have bought 12.68k shares worth US$372k. But insiders sold 16.45k shares worth US$538k. In total, Peapack-Gladstone Financial insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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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Does Peapack-Gladstone Financial Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that Peapack-Gladstone Financial insiders own 11% of the company, worth about US$57m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Peapack-Gladstone Financial Tell Us?
Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. Recent sales exacerbate our caution arising from analysis of Peapack-Gladstone Financial insider transactions. But it’s good to see that insiders own shares in the company. 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. For example – Peapack-Gladstone Financial has 1 warning sign we think you should be aware of.
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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, but not derivative transactions.
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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.