Bullish insiders bet US$4.5m on FB Financial Corporation (NYSE:FBK)
Quite a few insiders have dramatically grown their holdings in FB Financial Corporation (NYSE:FBK) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for FB Financial
The Last 12 Months Of Insider Transactions At FB Financial
In the last twelve months, the biggest single sale by an insider was when the President of FB Ventures, Wilburn Evans, sold US$2.6m worth of shares at a price of US$43.05 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$30.03). So it is hard to draw any strong conclusion from it.
Over the last year, we can see that insiders have bought 119.95k shares worth US$4.5m. But they sold 70.99k shares for US$3.1m. Overall, FB Financial insiders were net buyers during 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At FB Financial Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at FB Financial. We can see that Independent Director Raja Jubran paid US$199k for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.
Insider Ownership Of FB Financial
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. FB Financial insiders own about US$351m worth of shares (which is 25% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The FB Financial Insider Transactions Indicate?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about FB Financial. Looks promising! 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of FB Financial.
Of course FB Financial may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
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