Don't Ignore The Insider Selling In First Interstate BancSystem

We wouldn't blame First Interstate BancSystem, Inc. (NASDAQ:FIBK) shareholders if they were a little worried about the fact that Jonathan Scott, a company insider, recently netted about US$619k selling shares at an average price of US$32.07. However, that sale only accounted for 1.4% of their holding, so arguably it doesn't say much about their conviction.

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First Interstate BancSystem Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, James Scott, sold US$1.2m worth of shares at a price of US$33.80 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$30.36). So it may not shed much light on insider confidence at current levels.

Insiders in First Interstate BancSystem didn't buy any shares in 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!

See our latest analysis for First Interstate BancSystem

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of First Interstate BancSystem

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 Interstate BancSystem insiders own 8.4% of the company, worth about US$266m. 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 Interstate BancSystem Insiders?

Insiders haven't bought First Interstate BancSystem stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 1 warning sign for First Interstate BancSystem and we suggest you have a look.

Of course First Interstate BancSystem 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 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.