Anyone interested in FS Bancorp, Inc. (NASDAQ:FSBW) should probably be aware that the CEO & Director, Joseph Adams, recently divested US$246k worth of shares in the company, at an average price of US$55.03 each. That sale was 11% of their holding, so it does make us raise an eyebrow.
The Last 12 Months Of Insider Transactions At FS Bancorp
In the last twelve months, the biggest single sale by an insider was when the insider, Debra Steck, sold US$626k worth of shares at a price of US$48.01 per share. So it’s clear an insider wanted to take some cash off the table, even below the current price of US$54.21. 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. However, while insider selling is sometimes discouraging, it’s only a weak signal. We note that the biggest single sale was 74% of Debra Steck’s holding.
In the last year FS Bancorp insiders didn’t buy any company stock. You can see a visual depiction of insider transactions (by 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!
I will like FS Bancorp better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does FS Bancorp Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that FS Bancorp insiders own 7.6% of the company, worth about US$18m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The FS Bancorp Insider Transactions Indicate?
Insiders sold stock recently, but they haven’t been buying. And there weren’t any purchases to give us comfort, over the last year. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. So we’d only buy after careful consideration. Of course, the future is what matters most. So if you are interested in FS Bancorp, you should check out this free report on analyst forecasts for the company.
But note: FS Bancorp 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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