We wouldn't blame First Interstate BancSystem, Inc. (NASDAQ:FIBK) shareholders if they were a little worried about the fact that Homer Scott, a company insider, recently netted about US$32m selling shares at an average price of US$32.14. Probably the most concerning element of the whole transaction is that the disposal amounted to 50% of their entire holding.
Check out our latest analysis for First Interstate BancSystem
First Interstate BancSystem Insider Transactions Over The Last Year
Notably, that recent sale by Homer Scott is the biggest insider sale of First Interstate BancSystem shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$31.67. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. 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 19.15k shares worth US$496k. But they sold 1.54m shares for US$48m. Over the last year we saw more insider selling of First Interstate BancSystem shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
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. First Interstate BancSystem insiders own about US$400m worth of shares (which is 12% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The First Interstate BancSystem Insider Transactions Indicate?
Insiders sold First Interstate BancSystem shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since First Interstate BancSystem is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. While we like knowing 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. At Simply Wall St, we've found that First Interstate BancSystem has 2 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.
Of course First Interstate BancSystem may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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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.