Senior Executive VP & CFO Of Bank of New York Mellon Sold 26% Of Their Shares

Some The Bank of New York Mellon Corporation (NYSE:BNY) shareholders may be a little concerned to see that the Senior Executive VP & CFO, Dermot McDonogh, recently sold a substantial US$4.9m worth of stock at a price of US$155 per share. That's a big disposal, and it decreased their holding size by 26%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Bank of New York Mellon

In fact, the recent sale by Dermot McDonogh was the biggest sale of Bank of New York Mellon shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$157, an insider wanted to cash in some shares. 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. This single sale was just 26% of Dermot McDonogh's stake.

Insiders in Bank of New York Mellon didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Bank of New York Mellon

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Does Bank of New York Mellon Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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. Bank of New York Mellon insiders own 0.1% of the company, currently worth about US$151m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Bank of New York Mellon Insider Transactions Indicate?

An insider hasn't bought Bank of New York Mellon 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 since Bank of New York Mellon 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. 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. At Simply Wall St, we found 1 warning sign for Bank of New York Mellon that deserve your attention before buying any shares.

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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.

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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.