We'd be surprised if First Interstate BancSystem, Inc. (NASDAQ:FIBK) shareholders haven't noticed that an insider, Jonathan Scott, recently sold US$385k worth of stock at US$38.53 per share. However, the silver lining is that the sale only reduced their total holding by 2.0%, so we're hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At First Interstate BancSystem
In fact, the recent sale by insider Jonathan Scott was not their only sale of First Interstate BancSystem shares this year. They previously made an even bigger sale of -US$1.9m worth of shares at a price of US$35.42 per share. That means that even when the share price was below the current price of US$37.67, an insider wanted to cash in some shares. 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 8.7% of Jonathan Scott's holding.
First Interstate BancSystem insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for First Interstate BancSystem
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. First Interstate BancSystem insiders own 7.7% of the company, currently worth about US$270m based on the recent share price. 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 Does This Data Suggest About First Interstate BancSystem Insiders?
Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. On the plus side, First Interstate BancSystem makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. Case in point: We've spotted 2 warning signs for First Interstate BancSystem you should be aware of, and 1 of these is a bit concerning.
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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.