After the US Banking Crisis, Two Insiders at US Bancorp Just Bought $1.34M Worth of Stock

Insider trades can give investors a better understanding of what’s going on within the world’s publicly-traded companies. No one has more information in relation to a company’s prospects than its executives and directors.

In this report, we are going to highlight some interesting insider buying at US Bancorp (USB:US). US Bancorp is an American bank holding company. It is the parent company of U.S. Bank, which provides banking, investment, mortgage, trust, and payment services products to individuals, businesses, governmental entities, and other financial institutions across the US. The company is listed on the New York Stock Exchange and currently has a market cap of around $50.28 billion.

Insider Buying at US Bancorp

2iQ’s insider transaction data shows that on April 21 and 28, board members Alan Colberg and Scott W. Wine purchased 10,000 and 30,438 USB shares, respectively.  Mr. Colberg increased his holdings at a share price of $34.14, while Mr. Wine made his investment at 32.85 per share. These trades accumulate 40,438 shares and a total investment of $1,341,288.

Insider Buying Halted Since 2013 Recommences

These trades are notable for several reasons.

Firstly, insider purchases at U.S. Bancorp are rare. Our data shows that the trade by Alan Colberg is the first open-market purchase from an insider at the company since October 2013 and Mr. Wine's is the second. This suggests that the insiders see a real opportunity at present.

Secondly, the insiders possess extensive expertise in their concerned domains. Mr. Colberg has a financial background and previously served as President and Chief Executive Officer of Assurant, Inc., a financial services company providing specialty insurance products and services. Mr. Wine on the other hand is an immaculate professional of the industrial manufacturing sector. Prior to joining CNH Industrial, he served as the Chairman and Chief Executive Officer of Polaris Industries Inc., a worldwide manufacturer and marketer of innovative high-performance motorized products.

Share Price Fall

US Bancorp shares have fallen due to the US banking crisis recently. Back in late February, the stock was trading at $48. Today, however, it is trading at $32.

This share price weakness may not be justified, however. Recently, US Bancorp posted solid results for the first quarter of 2023, with revenues exceeding $7 billion for the first time in the company’s history and diluted earnings per share coming in at $1.16, above the consensus forecast of $1.12.

At the end of the quarter, the company’s common equity tier 1 capital ratio was at its target level of 8.5%, and management said that it expects the ratio to expand over the next several quarters as it realizes the accretive benefits of the recently-acquired Union Bank.

“Our strong liquidity position is enhanced by a well-diversified deposit profile and access to ample alternative funding sources,” commented Chairman, President, and CEO Andy Cecere.

In light of the solid results here, we see these insider buyings as a bullish development.