Independent Director Of Finance of America Companies Sold 49% Of Their Shares

We wouldn't blame Finance of America Companies Inc. (NYSE:FOA) shareholders if they were a little worried about the fact that Lance West, the Independent Director recently netted about US$837k selling shares at an average price of US$20.93. That's a big disposal, and it decreased their holding size by 49%, which is notable but not too bad.

Check out our latest analysis for Finance of America Companies

The Last 12 Months Of Insider Transactions At Finance of America Companies

Notably, that recent sale by Lance West is the biggest insider sale of Finance of America Companies 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$19.99. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership

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. We usually like to see fairly high levels of insider ownership. It appears that Finance of America Companies insiders own 6.8% of the company, worth about US$32m. 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 Do The Finance of America Companies Insider Transactions Indicate?

An insider hasn't bought Finance of America Companies 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. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! 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. Be aware that Finance of America Companies is showing 5 warning signs in our investment analysis, and 3 of those don't sit too well with us...

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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.