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Have Insiders Sold First Foundation Inc. (NASDAQ:FFWM) Shares Recently?

Simply Wall St

Investors may wish to note that the Executive VP & CFO of First Foundation Inc., John Michel, recently netted US$79k from selling stock, receiving an average price of US$15.74. On the bright side, that's just a small sale and only reduced their holding by 5.5%.

See our latest analysis for First Foundation

First Foundation Insider Transactions Over The Last Year

In fact, the recent sale by John Michel was the biggest sale of First Foundation shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$16.21, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 5.5% of John Michel's holding.

In the last twelve months insiders purchased 1650 shares for US$25k. But they sold 5000 for US$79k. 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!

NasdaqGM:FFWM Recent Insider Trading, November 2nd 2019

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. First Foundation insiders own about US$97m worth of shares. That equates to 13% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About First Foundation Insiders?

An insider hasn't bought First Foundation stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that First Foundation is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for First Foundation.

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.

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. Thank you for reading.