Have First Interstate BancSystem, Inc. (NASDAQ:FIBK) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
November 24, 2021
NasdaqGS:FIBK
Source: Shutterstock

We note that the First Interstate BancSystem, Inc. (NASDAQ:FIBK) Executive VP & Chief Risk Officer, Philip Gaglia, recently sold US$59k worth of stock for US$43.51 per share. It might not be a huge sale, but it did reduce their holding size 15%, hardly encouraging.

View our latest analysis for First Interstate BancSystem

First Interstate BancSystem Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Susan Heyneman, for US$4.2m worth of shares, at about US$40.00 per share. That means that even when the share price was below the current price of US$43.47, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was 100% of Susan Heyneman's holding.

All up, insiders sold more shares in First Interstate BancSystem than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:FIBK Insider Trading Volume November 24th 2021

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).

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. 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 Interstate BancSystem insiders own about US$670m worth of shares (which is 25% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The First Interstate BancSystem Insider Transactions Indicate?

An insider hasn't bought First Interstate BancSystem stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, First Interstate BancSystem makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. 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 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, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.


Simply Wall St character - Warren

Simply Wall St

Simply Wall St is focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of data scientists and multiple equity analysts with over two decades worth of financial markets experience between them.