We'd be surprised if First Busey Corporation (NASDAQ:BUSE) shareholders haven't noticed that the Independent Director, Michael Cassens, recently sold US$273k worth of stock at US$25.76 per share. On the bright side, that sale was only 5.8% of their holding, so we doubt it's very meaningful, on its own.
The Last 12 Months Of Insider Transactions At First Busey
Over the last year, we can see that the biggest insider purchase was by Independent Director Stephen King for US$499k worth of shares, at about US$18.44 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$25.28. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Happily, we note that in the last year insiders paid US$554k for 30.36k shares. But insiders sold 10.60k shares worth US$273k. In total, First Busey insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
First Busey is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does First Busey Boast High Insider Ownership?
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. First Busey insiders own about US$119m worth of shares (which is 8.7% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About First Busey Insiders?
An insider sold First Busey shares recently, but they didn't buy any. But we take heart from prior transactions. We are also comforted by the high levels of insider ownership. So we're not too bothered by recent selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for First Busey you should know about.
But note: First Busey 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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