We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell First Savings Financial Group, Inc. (NASDAQ:FSFG), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
The Last 12 Months Of Insider Transactions At First Savings Financial Group
In the last twelve months, the biggest single sale by an insider was when COO, Corporate Secretary & Director John Lawson sold US$228k worth of shares at a price of US$72.00 per share. Although we don’t gain confidence from insider selling, we note that this large sale was at well above current price of US$45.36. So it may not tell us anything about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 846.77 shares worth US$48k. But insiders sold 10.52k shares worth US$683k. All up, insiders sold more shares in First Savings Financial Group than they bought, over the last year. The sellers received a price of around US$64.92, on average. Insider selling doesn’t make us excited to buy. But we note that the selling, on average, was at well above the recently traded price of US$45.36. You can see a visual depiction of insider transactions 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.
Are First Savings Financial Group Insiders Buying Or Selling?
In the last three months, President Larry Myers bought US$39k. But that was only a smidgen more than the US$39k worth of sales. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.
Insider Ownership of First Savings Financial Group
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. First Savings Financial Group insiders own 15% of the company, currently worth about US$17m 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.
What Might The Insider Transactions At First Savings Financial Group Tell Us?
Insider purchases have outweighed sales, in the last three months. But the net investment is not enough to encourage us much. Recent sales exacerbate our caution arising from analysis of First Savings Financial Group insider transactions. The modest level of insider ownership is, at least, some comfort. 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.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.