Executive VP & CFO James Ciroli Just Bought 5.8% More Shares In Flagstar Bancorp, Inc. (NYSE:FBC)
Even if it's not a huge purchase, we think it was good to see that James Ciroli, the Executive VP & CFO of Flagstar Bancorp, Inc. (NYSE:FBC) recently shelled out US$61k to buy stock, at US$30.41 per share. Although the purchase is not a big one, increasing their shareholding by only 5.8%, it can be interpreted as a good sign.
Check out our latest analysis for Flagstar Bancorp
Flagstar Bancorp Insider Transactions Over The Last Year
In fact, the recent purchase by James Ciroli was the biggest purchase of Flagstar Bancorp shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of US$30.01. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Flagstar Bancorp insiders were buying shares, but not selling. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
Many investors like to check how much of a company is owned by 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. It appears that Flagstar Bancorp insiders own 1.9% of the company, worth about US$32m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Flagstar Bancorp Insider Transactions Indicate?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Flagstar Bancorp we think they are probably pretty confident of a bright future. 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. Case in point: We've spotted 2 warning signs for Flagstar Bancorp you should be aware of.
But note: Flagstar Bancorp 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.
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. 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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