Have Insiders Sold First BanCorp Shares Recently?

We wouldn't blame First BanCorp. (NYSE:FBP) shareholders if they were a little worried about the fact that Donald Kafka, the Executive VP & COO recently netted about US$1.1m selling shares at an average price of US$21.81. That's a big disposal, and it decreased their holding size by 22%, which is notable but not too bad.

View our latest analysis for First BanCorp

The Last 12 Months Of Insider Transactions At First BanCorp

In the last twelve months, the biggest single sale by an insider was when the Executive VP & CFO, Orlando Berges-González, sold US$1.3m worth of shares at a price of US$17.92 per share. That means that even when the share price was below the current price of US$21.83, an insider wanted to cash in some shares. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 21% of Orlando Berges-González's holding.

In the last year First BanCorp insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of First BanCorp

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.6% of First BanCorp shares, worth about US$92m. 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 BanCorp Insiders?

Insiders sold First BanCorp shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that First BanCorp is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing First BanCorp. To that end, you should learn about the 3 warning signs we've spotted with First BanCorp (including 1 which is concerning).

But note: First BanCorp 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com