We wouldn't blame First Interstate BancSystem, Inc. (NASDAQ:FIBK) shareholders if they were a little worried about the fact that Susan Heyneman, a company insider, recently netted about US$1.7m selling shares at an average price of US$40.60. That's a big disposal, and it decreased their holding size by 29%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At First Interstate BancSystem
Notably, that recent sale by insider Susan Heyneman was not the only time they sold First Interstate BancSystem shares this year. Earlier in the year, they fetched US$40.00 per share in a -US$4.2m sale. That means that even when the share price was below the current price of US$41.19, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 100% of Susan Heyneman's holding.
Happily, we note that in the last year insiders paid US$807k for 25.00k shares. On the other hand they divested 165.87k shares, for US$6.6m. All up, insiders sold more shares in First Interstate BancSystem 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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Insider Ownership of First Interstate BancSystem
For a common shareholder, it is worth checking how many shares are held by company 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's great to see that First Interstate BancSystem insiders own 26% of the company, worth about US$671m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About First Interstate BancSystem Insiders?
Insiders sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. Case in point: We've spotted 1 warning sign for First Interstate BancSystem you should be aware of.
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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, but not derivative transactions.
This article by Simply Wall St is general in nature. 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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