Some First BanCorp. (NYSE:FBP) shareholders may be a little concerned to see that the Executive VP & CFO, Orlando Berges-González, recently sold a substantial US$1.3m worth of stock at a price of US$17.92 per share. That sale reduced their total holding by 21% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At First BanCorp
In fact, the recent sale by Orlando Berges-González was the biggest sale of First 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 below the current price (US$18.08). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 21% of Orlando Berges-González's holding.
First BanCorp insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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 Of First BanCorp
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 2.6% of First BanCorp shares, worth about US$77m. 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 BanCorp Tell Us?
Insiders haven't bought First BanCorp stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since First BanCorp is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 3 warning signs for First BanCorp (of which 1 is significant!) you should know about.
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.
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