Massive Cluster of Insider Selling at Western Alliance, Executives at Insulin Pump Maker Buy Shares Amid Harmful Allegations Against the Company, Plus Other Insider Trading

Massive Cluster of Insider Selling at Western Alliance

Four different insiders, including the two highest-ranked executives, at Western Alliance Bancorporation (NYSE:WAL) discarded shares last week. To begin with, Chairman and CEO Robert Gary Sarver sold 100,000 shares on Thursday at prices ranging from $47.56 to $46.87 per share, cutting his direct ownership stake to 955,075 shares. Dale M. Gibbons, Chief Financial Officer and Executive Vice President, offloaded 5,000 shares on the same day at a price tag of $47.70 per share, a sale that trimmed his holding to 144,434 shares. Bruce D. Beach, a director of Western Alliance since April 2005, sold 7,377 units of common stock on Thursday at prices that fell in the range of $47.59 to $47.81 per unit, all of which were held indirectly in a revocable trust. Mr. Beach currently holds an indirect ownership stake of 34,211 shares following the recent sale. Board member Steven J. Hilton liquidated 20,000 shares on Wednesday at an average price of $46.69 per share, reducing his indirect ownership stake to 134,991 shares held via the Steven J. Hilton Family Trust. Mr. Hilton also owns 31,960 shares directly.

The shares of the Arizona-based bank holding company are trading near their 52-week high of $48.30, after gaining 34% so far in 2016. Therefore, the recent spike in insider selling should not surprise the investment community at all. Western Alliance Bancorporation (NYSE:WAL) reported interest income of $184.7 million for the third quarter, which increased by 26.3% year-over-year. The increase was mainly driven by a $2.33 billion increase in the average loan balance, as well as an increase in the average yield on loans. The company’s loan balance was mainly boosted by the acquisition of the $1.28 billion domestic select-service franchise loan portfolio from General Electric Company (NYSE:GE), as part of GE’s strategy to divest its finance arm. Robert B. Gillam’s McKinley Capital Management owns approximately 597,000 shares of Western Alliance Bancorporation (NYSE:WAL) as of September 30.

Executives at Plains All American Pipeline Discard Shares

Two members of Plains All American Pipeline L.P. (NYSE:PAA)’s executive team unloaded shares last week. John P. von Berg, Executive Vice President of Commercial Activities, discarded one block of 86,660 shares and another one of 29,024 shares on Thursday at prices that fell between $32.30 and $33.66 per share. Mr. Berg currently owns a total of 6,675 shares after the recent transactions. Chief Financial Officer and Executive Vice President Al Swanson liquidated 65,000 shares on Thursday at prices varying from $33.30 to $33.66 per share, cutting his holding to 100,998 shares.

While the future of energy master limited partnerships (MLPs) looks brighter at the moment with increased prospects for infrastructure growth after Donald Trump’s election victory, insiders at Plains All American Pipeline L.P. (NYSE:PAA) are offloading shares. The company owns and operates midstream energy infrastructure and provides logistics services for crude oil, NGL, natural gas and refined products. The shares of Plains All American Pipeline are 35% in the green this year. Richard Driehaus’ Driehaus Capital added a stake of around 204,000 shares in Plains All American Pipeline L.P. (NYSE:PAA) to its pool of holding during the third quarter.

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