Even if it's not a huge purchase, we think it was good to see that Christy DiPietro, the Independent Director of First United Corporation (NASDAQ:FUNC) recently shelled out US$55k to buy stock, at US$18.30 per share. While that isn't the hugest buy, it actually boosted their shareholding by 136%, which is good to see.
First United Insider Transactions Over The Last Year
The insider John McCullough made the biggest insider purchase in the last 12 months. That single transaction was for US$70k worth of shares at a price of US$11.81 each. Even though the purchase was made at a significantly lower price than the recent price (US$17.43), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Happily, we note that in the last year insiders paid US$271k for 19.49k shares. On the other hand they divested 0.72 shares, for US$8.1. In the last twelve months there was more buying than selling by First United insiders. The average buy price was around US$13.90. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
First United is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of First United
Many investors like to check how much of a company is owned by 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. Insiders own 5.5% of First United shares, worth about US$6.3m, according to our data. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At First United Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on First United stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing First United. In terms of investment risks, we've identified 1 warning sign with First United and understanding it should be part of your investment process.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
If you decide to trade First United, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted
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. 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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.