Have First Business Financial Services Insiders Been Selling Stock?

Anyone interested in First Business Financial Services, Inc. (NASDAQ:FBIZ) should probably be aware that the Executive Vice President, Mark Meloy, recently divested US$200k worth of shares in the company, at an average price of US$40.05 each. However, the silver lining is that the sale only reduced their total holding by 8.5%, so we're hesitant to read anything much into it, on its own.

Check out our latest analysis for First Business Financial Services

The Last 12 Months Of Insider Transactions At First Business Financial Services

The Chief Human Resources Officer, Jodi Chandler, made the biggest insider sale in the last 12 months. That single transaction was for US$260k worth of shares at a price of US$31.83 each. That means that an insider was selling shares at slightly below the current price (US$42.83). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 31% of Jodi Chandler's holding.

Over the last year, we can see that insiders have bought 807.00 shares worth US$29k. On the other hand they divested 14.63k shares, for US$510k. In total, First Business Financial Services insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like First Business Financial Services better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. First Business Financial Services insiders own about US$25m worth of shares. That equates to 7.1% of the company. 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 Does This Data Suggest About First Business Financial Services Insiders?

The stark truth for First Business Financial Services is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that First Business Financial Services is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 1 warning sign for First Business Financial Services and we suggest you have a look.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.

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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.