We'd be surprised if First Interstate BancSystem, Inc. (NASDAQ:FIBK) shareholders haven't noticed that an insider, James Scott, recently sold US$165k worth of stock at US$43.63 per share. On the bright side, that sale was only 7.7% of their holding, so we doubt it's very meaningful, on its own.
The Last 12 Months Of Insider Transactions At First Interstate BancSystem
In the last twelve months, the biggest single sale by an insider was when the insider, Jonathan Scott, sold US$645k worth of shares at a price of US$41.14 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$42.75. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 99% of Jonathan Scott's holding.
Over the last year we saw more insider selling of First Interstate BancSystem shares, than buying. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of First Interstate BancSystem
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. First Interstate BancSystem insiders own about US$515m worth of shares (which is 18% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At First Interstate BancSystem Tell Us?
Insiders sold First Interstate BancSystem shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that First Interstate BancSystem is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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