We’d be surprised if FirstCash, Inc. (NASDAQ:FCFS) shareholders haven’t noticed that the Independent Director, James Graves, recently sold US$357k worth of stock at US$99.33 per share. That sale was 15.2% of their holding, so it does make us raise an eyebrow.
The Last 12 Months Of Insider Transactions At FirstCash
The Chairman of the Board, Daniel Feehan, made the biggest insider sale in the last 12 months. That single transaction was for US$1.3m worth of shares at a price of US$89.66 each. That means that an insider was selling shares at slightly below the current price (US$100). 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. This single sale was just 13% of Daniel Feehan’s stake.
Over the last year, we note insiders sold 25597 shares worth US$2.3m. In the last year FirstCash insiders didn’t buy any company stock. You can see a visual depiction of insider transactions (by 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!
Insider Ownership of FirstCash
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. FirstCash insiders own 2.6% of the company, currently worth about US$111m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At FirstCash Tell Us?
An insider hasn’t bought FirstCash stock in the last three months, but there was some selling. And even if we look to the last year, we didn’t see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn’t make us feel confident about the company. Of course, the future is what matters most. So if you are interested in FirstCash, you should check out this free report on analyst forecasts for the company.
Of course FirstCash 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, but not derivative transactions.
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