This Insider Has Just Sold Shares In First Interstate BancSystem, Inc. (NASDAQ:FIBK)

By
Simply Wall St
Published
March 16, 2022
NasdaqGS:FIBK
Source: Shutterstock

We note that a First Interstate BancSystem, Inc. (NASDAQ:FIBK) insider, Philip Gaglia, recently sold US$72k worth of stock for US$38.70 per share. It might not be a huge sale, but it did reduce their holding size 36%, hardly encouraging.

Check out our latest analysis for First Interstate BancSystem

The Last 12 Months Of Insider Transactions At First Interstate BancSystem

The President Kevin Riley made the biggest insider purchase in the last 12 months. That single transaction was for US$113k worth of shares at a price of US$39.58 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$39.24). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months insiders purchased 4.88k shares for US$192k. But insiders sold 5.31k shares worth US$213k. All up, insiders sold more shares in First Interstate BancSystem than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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 March 16th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of First Interstate BancSystem

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. First Interstate BancSystem insiders own 20% of the company, currently worth about US$499m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The First Interstate BancSystem Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at First Interstate BancSystem, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, First Interstate BancSystem makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While we like knowing 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. At Simply Wall St, we found 1 warning sign for First Interstate BancSystem that deserve your attention before buying any shares.

But note: First Interstate BancSystem 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.

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