We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in First Savings Financial Group, Inc. (NASDAQ:FSFG).
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
First Savings Financial Group Insider Transactions Over The Last Year
COO, Corporate Secretary & Director John Lawson made the biggest insider sale in the last 12 months. That single transaction was for US$250k worth of shares at a price of US$50.45 each. So it’s clear an insider wanted to take some cash off the table, even below the current price of US$52.99. While sellers have a variety of reasons for selling, this isn’t particularly great to see. We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price. Please note, however, that this single sale was just 14.3% of John Lawson’s stake.
In the last twelve months insiders purchased 753.77 shares for US$41k. But insiders sold 15.79k shares worth US$939k. All up, insiders sold more shares in First Savings Financial Group than they bought, over the last year. The sellers received a price of around US$59.48, on average. It’s not ideal to see that insiders have sold at around the current price. But we don’t put too much weight on the insider selling, since sellers could have personal reasons. 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!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
First Savings Financial Group Insiders Are Selling The Stock
There was substantially more insider selling, than buying, of First Savings Financial Group shares over the last three months. In that time, insiders dumped US$466k worth of shares. On the other hand we note President Larry Myers bought US$33k worth of shares. Since the selling really does outweigh the buying, we’d say that these transactions may suggest that some insiders feel the shares are not cheap.
Insider Ownership of First Savings Financial Group
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that First Savings Financial Group insiders own 15% of the company, worth about US$18m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The First Savings Financial Group Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at First Savings Financial Group, in the last three months. And our longer term analysis of insider transactions didn’t bring confidence, either. Insiders own shares, but we’re still pretty cautious, given the history of sales. We’d think twice before buying! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for First Savings Financial Group.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.