Even if it's not a huge purchase, we think it was good to see that James Noone, the President & CEO of FinWise Bancorp (NASDAQ:FINW) recently shelled out US$53k to buy stock, at US$13.36 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
The Last 12 Months Of Insider Transactions At FinWise Bancorp
Notably, that recent purchase by James Noone is the biggest insider purchase of FinWise Bancorp shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$13.67. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for FinWise Bancorp share holders is that an insider was buying at near the current price. James Noone was the only individual insider to buy shares in the last twelve months.
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 FinWise Bancorp
FinWise Bancorp is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. FinWise Bancorp insiders own about US$64m worth of shares. That equates to 34% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About FinWise Bancorp Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in FinWise Bancorp shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing FinWise Bancorp. Every company has risks, and we've spotted 2 warning signs for FinWise Bancorp (of which 1 can't be ignored!) you should know about.
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.
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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