Have Insiders Sold First Western Financial Shares Recently?

Anyone interested in First Western Financial, Inc. (NASDAQ:MYFW) should probably be aware that the Founder, Scott Wylie, recently divested US$174k worth of shares in the company, at an average price of US$18.77 each. However, the silver lining is that the sale only reduced their total holding by 1.3%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for First Western Financial

First Western Financial Insider Transactions Over The Last Year

Notably, that recent sale by Founder Scott Wylie was not the only time they sold First Western Financial shares this year. Earlier in the year, they fetched US$16.41 per share in a -US$696k sale. So it's clear an insider wanted to take some cash off the table, even below the current price of US$19.02. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 5.6% of Scott Wylie's stake.

Scott Wylie ditched 51.68k shares over the year. The average price per share was US$16.83. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does First Western Financial Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. First Western Financial insiders own about US$27m worth of shares. That equates to 15% of the company. 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 Does This Data Suggest About First Western Financial Insiders?

An insider hasn't bought First Western Financial stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of First Western Financial.

But note: First Western 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 of direct interests only, but not derivative transactions or indirect interests.

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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.