Karen Buck of Flagstar Bancorp, Inc. (NYSE:FBC) Just Spent US$95k On Shares

Even if it's not a huge purchase, we think it was good to see that Karen Buck, a Flagstar Bancorp, Inc. (NYSE:FBC) insider, recently shelled out US$95k to buy stock, at US$47.41 per share. Even though that isn't a massive buy, it did increase their holding by 200%, which is arguably a good sign.

See our latest analysis for Flagstar Bancorp

The Last 12 Months Of Insider Transactions At Flagstar Bancorp

Over the last year, we can see that the biggest insider purchase was by Independent Director Jay Hansen for US$173k worth of shares, at about US$34.56 per share. We do like to see buying, but this purchase was made at well below the current price of US$44.64. 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.

Flagstar Bancorp insiders may have bought shares in the last year, but they didn't sell any. 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!

Flagstar Bancorp 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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Flagstar Bancorp insiders own 2.2% of the company, worth about US$54m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Flagstar Bancorp Tell Us?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Flagstar Bancorp insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Flagstar Bancorp has 2 warning signs (1 is a bit unpleasant!) that deserve your attention before going any further with your analysis.

Of course Flagstar Bancorp may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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. 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.
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