As First Citizens BancShares, Inc.'s (NASDAQ:FCNC.A) market cap increased US$406m, insiders who bought last year may be reflecting on buying more

By
Simply Wall St
Published
November 24, 2021
NasdaqGS:FCNC.A
Source: Shutterstock

Insiders who bought First Citizens BancShares, Inc. (NASDAQ:FCNC.A) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$406m as a result of the stock's 4.9% gain over the same period. Put another way, the original US$149k acquisition is now worth US$158k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for First Citizens BancShares

The Last 12 Months Of Insider Transactions At First Citizens BancShares

Over the last year, we can see that the biggest insider purchase was by Chief Strategy Officer Jeffery Ward for US$149k worth of shares, at about US$838 per share. That means that an insider was happy to buy shares at around the current price of US$886. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider bought shares at close to current prices. Jeffery Ward was the only individual insider to buy shares in the last twelve months.

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!

insider-trading-volume
NasdaqGS:FCNC.A Insider Trading Volume November 24th 2021

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 Citizens BancShares

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that First Citizens BancShares insiders own 36% of the company, worth about US$3.0b. 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 Citizens BancShares Insiders?

The fact that there have been no First Citizens BancShares insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, First Citizens BancShares insiders feel good about the company's future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for First Citizens BancShares.

Of course First Citizens BancShares 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.

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.

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