Have Insiders Been Selling 1st Source Corporation (NASDAQ:SRCE) Shares This Year?
Want to participate in a short research study? Help shape the future of investing tools and receive a $20 prize!
It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in 1st Source Corporation (NASDAQ:SRCE).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
View our latest analysis for 1st Source
The Last 12 Months Of Insider Transactions At 1st Source
Over the last year, we can see that the biggest insider sale was by Allison Egidi for US$444k worth of shares, at about US$52.50 per share. That means that an insider was selling shares at around the current price of US$47.26. While their view may have changed since the sale, this is not a particularly positive fact. Arguably, insider selling at around current prices should give us reason to reflect on whether the stock is fully valued at the moment.
All up, insiders sold more shares in 1st Source than they bought, over the last year. They sold for an average price of about US$53.11. It’s not particularly great to see insiders were selling shares around current prices. Since insiders sell for many reasons, we wouldn’t put too much weight on it. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like 1st Source better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider 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. 1st Source insiders own 32% of the company, currently worth about US$394m based on the recent share price. 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 fact that there have been no 1st Source insider transactions recently certainly doesn’t bother us. While we feel good about high insider ownership of 1st Source, we can’t say the same about the selling of shares. Of course, the future is what matters most. So if you are interested in 1st Source, you should check out this free report on analyst forecasts for the company.
Of course 1st Source may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. On rare occasion, data errors may occur. Thank you for reading.
