Lead Independent Director Doyle Simons Sold A Bunch Of Shares In Fiserv

Some Fiserv, Inc. (NYSE:FI) shareholders may be a little concerned to see that the Lead Independent Director, Doyle Simons, recently sold a substantial US$8.1m worth of stock at a price of US$202 per share. That diminished their holding by a very significant 60%, which arguably implies a strong desire to reallocate capital.

Check out our latest analysis for Fiserv

The Last 12 Months Of Insider Transactions At Fiserv

Notably, that recent sale by Doyle Simons is the biggest insider sale of Fiserv shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$200. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last year Fiserv 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!

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Does Fiserv Boast High 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's great to see that Fiserv insiders own 0.6% of the company, worth about US$718m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Fiserv Tell Us?

An insider sold Fiserv 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, Fiserv makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fiserv. At Simply Wall St, we found 2 warning signs for Fiserv that deserve your attention before buying any shares.

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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.