Whilst it may not be a huge deal, we thought it was good to see that the 1st Source Corporation (NASDAQ:SRCE) Chairman & CEO, Christopher Murphy, recently bought US$72k worth of stock, for US$28.76 per share. That might not be a big purchase but it only increased their holding by 0.05%, and could be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At 1st Source
In the last twelve months, the biggest single sale by an insider was when the Executive VP, John Griffith, sold US$150k worth of shares at a price of US$51.78 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$33.00. So it is hard to draw any strong conclusion from it. John Griffith was the only individual insider to sell over the last year.
Happily, we note that in the last year insiders paid US$220k for 6.00k shares. On the other hand they divested 2896 shares, for US$150k. In total, 1st Source insiders bought more than they sold over the last year. Their average price was about US$36.63. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by individuals) over the last year. 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).
Insider Ownership of 1st Source
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that 1st Source insiders own 22% of the company, worth about US$183m. 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 1st Source Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about 1st Source. That's what I like to see! While we like knowing 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. To help with this, we've discovered 3 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in 1st Source.
But note: 1st Source may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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