Potential First Business Financial Services, Inc. (NASDAQ:FBIZ) shareholders may wish to note that the Independent Chair of the Board, Gerald Kilcoyne, recently bought US$165k worth of stock, paying US$32.99 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 9.5%.
First Business Financial Services Insider Transactions Over The Last Year
Notably, that recent purchase by Gerald Kilcoyne is the biggest insider purchase of First Business Financial Services shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$34.47. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
While First Business Financial Services insiders bought shares during the last year, they didn't sell. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of First Business Financial Services
Many investors like to check how much of a company is owned by 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. It appears that First Business Financial Services insiders own 6.5% of the company, worth about US$19m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The First Business Financial Services Insider Transactions Indicate?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of First Business Financial Services we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of First Business Financial Services.
But note: First Business Financial Services 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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