We'd be surprised if First Midwest Bancorp, Inc. (NASDAQ:FMBI) shareholders haven't noticed that an insider, James Hotchkiss, recently sold US$103k worth of stock at US$20.52 per share. However, the silver lining is that the sale only reduced their total holding by 6.2%, so we're hesitant to read anything much into it, on its own. First Midwest Bancorp Insider Transactions Over The Last Year

In fact, the recent sale by James Hotchkiss was the biggest sale of First Midwest Bancorp shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$22.07). 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. 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. It is worth noting that this sale was only 6.2% of James Hotchkiss's holding.

Over the last year, we can see that insiders have bought 7.63k shares worth US$108k. But they sold 5.00k shares for US$103k. Overall, First Midwest Bancorp insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!NasdaqGS:FMBI Insider Trading Volume March 9th 2021

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them). Insider Ownership of First Midwest Bancorp

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 Midwest Bancorp insiders own about US$32m worth of shares. That equates to 1.3% 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. What Might The Insider Transactions At First Midwest Bancorp Tell Us?

An insider sold First Midwest Bancorp shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. And insiders do own shares. So we're happy enough to look past some selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 4 warning signs with First Midwest Bancorpand understanding them should be part of your investment process.

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.

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. 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.

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