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Have Insiders Sold First Foundation Inc. (NASDAQ:FFWM) Shares Recently?
We wouldn't blame First Foundation Inc. (NASDAQ:FFWM) shareholders if they were a little worried about the fact that John Hakopian, the President of First Foundation Advisors & Director recently netted about US$1.6m selling shares at an average price of US$8.59. That's a big disposal, and it decreased their holding size by 22%, which is notable but not too bad.
Check out our latest analysis for First Foundation
First Foundation Insider Transactions Over The Last Year
In fact, the recent sale by John Hakopian was the biggest sale of First Foundation shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$8.69. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Happily, we note that in the last year insiders paid US$218k for 15.88k shares. On the other hand they divested 214.17k shares, for US$2.1m. All up, insiders sold more shares in First Foundation 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does First Foundation Boast High Insider Ownership?
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. Insiders own 11% of First Foundation shares, worth about US$53m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At First Foundation Tell Us?
Unfortunately, there has been more insider selling of First Foundation stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing First Foundation. At Simply Wall St, we've found that First Foundation has 4 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.
But note: First Foundation 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.
What are the risks and opportunities for First Foundation?
First Foundation Inc., through its subsidiaries, provides banking services, investment advisory, wealth management, and trust services to individuals, businesses, and other organizations in the United States.
Rewards
Trading at 30.1% below our estimate of its fair value
Earnings have grown 29.2% per year over the past 5 years
Risks
Earnings are forecast to decline by an average of 10.4% per year for the next 3 years
Significant insider selling over the past 3 months
Volatile share price over the past 3 months
Further research on
First Foundation
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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.
About NasdaqGM:FFWM
First Foundation
First Foundation Inc., through its subsidiaries, provides banking services, investment advisory, wealth management, and trust services to individuals, businesses, and other organizations in the United States.
Very undervalued with flawless balance sheet and pays a dividend.
