Anyone interested in First Foundation Inc. (NYSE:FFWM) should probably be aware that the Executive Chairman, Ulrich Keller, recently divested US$267k worth of shares in the company, at an average price of US$8.90 each. However, the silver lining is that the sale only reduced their total holding by 1.4%, so we're hesitant to read anything much into it, on its own.
See our latest analysis for First Foundation
First Foundation Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the President of First Foundation Advisors & Director, John Hakopian, for US$1.6m worth of shares, at about US$9.34 per share. So we know that an insider sold shares at around the present share price of US$8.85. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Over the last year, we can see that insiders have bought 37.82k shares worth US$175k. But insiders sold 244.17k shares worth US$2.3m. All up, insiders sold more shares in First Foundation than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insider Ownership Of First Foundation
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 9.1% of First Foundation shares, worth about US$45m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At First Foundation Tell Us?
An insider hasn't bought First Foundation stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 2 warning signs for First Foundation and we suggest you have a look.
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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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