Stock Analysis

With Fulton Financial Corporation's (NASDAQ:FULT)) price down 5.5% this week, insiders might find some solace having sold US$575k worth of shares earlier this year.

NasdaqGS:FULT
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Over the past year, insiders sold US$575k worth of Fulton Financial Corporation (NASDAQ:FULT) stock at an average price of US$17.92 per share allowing them to get the most out of their money. After the stock price dropped 5.5% last week, the company's market value declined by US$160m, but insiders were able to mitigate their losses.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Fulton Financial

Fulton Financial Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Steven Etter, for US$335k worth of shares, at about US$18.61 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$16.35). So it may not shed much light on insider confidence at current levels.

Over the last year we saw more insider selling of Fulton Financial shares, than buying. 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:FULT Insider Trading Volume March 8th 2023

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Fulton Financial Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Fulton Financial. insider George Martin shelled out US$50k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.

Does Fulton Financial Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Fulton Financial insiders own 1.0% of the company, worth about US$27m. 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 Fulton Financial Insider Transactions Indicate?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. Still, the insider transactions at Fulton Financial in the last 12 months are not very heartening. But it's good to see that insiders own shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Fulton Financial has 1 warning sign we think you should be aware of.

But note: Fulton Financial 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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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.