Executive VP & Business Group Director Of First BanCorp Sold 35% Of Their Shares
Some First BanCorp. (NYSE:FBP) shareholders may be a little concerned to see that the Executive VP & Business Group Director, Thomas McDonald, recently sold a substantial US$754k worth of stock at a price of US$22.11 per share. That's a big disposal, and it decreased their holding size by 35%, which is notable but not too bad.
First BanCorp Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, Carlos Pietrantoni, sold US$1.2m worth of shares at a price of US$20.77 per share. That means that an insider was selling shares at slightly below the current price (US$22.12). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 22% of Carlos Pietrantoni's holding.
In the last year First BanCorp insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for First BanCorp
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Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. First BanCorp insiders own about US$80m worth of shares. That equates to 2.3% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At First BanCorp Tell Us?
An insider hasn't bought First BanCorp stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that First BanCorp is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of First BanCorp.
But note: First BanCorp 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 of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.