Anyone interested in First BanCorp. (NYSE:FBP) should probably be aware that the Executive VP & Chief Risk Officer, Nayda Rivera-Batista, recently divested US$303k worth of shares in the company, at an average price of US$15.15 each. On the bright side, that sale was only 6.4% of their holding, so we doubt it's very meaningful, on its own.
The Last 12 Months Of Insider Transactions At First BanCorp
In the last twelve months, the biggest single sale by an insider was when the Executive VP & Business Group Executive, Cassan Pancham, sold US$1.2m worth of shares at a price of US$11.10 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$14.74. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 33% of Cassan Pancham's stake.
In the last twelve months insiders purchased 3.83k shares for US$48k. On the other hand they divested 486.03k shares, for US$6.2m. In total, First BanCorp insiders sold more than they bought over the last year. 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!
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Does First BanCorp Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 2.4% of First BanCorp shares, worth about US$72m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The First BanCorp Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, First BanCorp makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! 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. In terms of investment risks, we've identified 2 warning signs with First BanCorp and understanding them should be part of your investment process.
But note: First BanCorp may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
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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.
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