Anyone interested in First American Financial Corporation (NYSE:FAF) should probably be aware that the Executive VP & CFO, Mark Seaton, recently divested US$500k worth of shares in the company, at an average price of US$61.93 each. The eyebrow raising move amounted to a reduction of 17% in their holding.
First American Financial Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Chief Operating Officer of First American Title Insurance Company, Christopher Leavell, for US$1.9m worth of shares, at about US$54.44 per share. That means that an insider was selling shares at slightly below the current price (US$62.29). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 53% of Christopher Leavell's holding.
Over the last year, we note insiders sold 106909 shares worth US$5.9m. First American Financial insiders didn't buy any shares over the last year. 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!
I will like First American Financial 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 of First American Financial
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. First American Financial insiders own about US$219m worth of shares (which is 3.1% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The First American Financial Insider Transactions Indicate?
An insider sold First American Financial shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. Of course, the future is what matters most. So if you are interested in First American Financial, you should check out this free report on analyst forecasts for the company.
But note: First American Financial 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.
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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. Thank you for reading.