Have Insiders Sold First Western Financial Shares Recently?

We'd be surprised if First Western Financial, Inc. (NASDAQ:MYFW) shareholders haven't noticed that the Founder, Scott Wylie, recently sold US$118k worth of stock at US$23.55 per share. On the bright side, that sale was only 0.7% of their holding, so we doubt it's very meaningful, on its own.

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First Western Financial Insider Transactions Over The Last Year

In fact, the recent sale by Founder Scott Wylie was not their only sale of First Western Financial shares this year. They previously made an even bigger sale of -US$118k worth of shares at a price of US$23.59 per share. That means that even when the share price was below the current price of US$24.35, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. It is worth noting that this sale was only 0.7% of Scott Wylie's holding.

Scott Wylie ditched 20.00k shares over the year. The average price per share was US$22.42. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for First Western Financial

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Insider Ownership Of First Western Financial

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that First Western Financial insiders own 15% of the company, worth about US$35m. 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 Does This Data Suggest About First Western Financial Insiders?

An insider sold First Western Financial shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, First Western Financial makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that First Western Financial has 1 warning sign and it would be unwise to ignore this.

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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.