Have Insiders Sold Fair Isaac Shares Recently?

Some Fair Isaac Corporation (NYSE:FICO) shareholders may be a little concerned to see that the Executive VP & Chief Human Resources Officer, Richard Deal, recently sold a substantial US$19m worth of stock at a price of US$1,374 per share. That's a big disposal, and it decreased their holding size by 22%, which is notable but not too bad.

See our latest analysis for Fair Isaac

Fair Isaac Insider Transactions Over The Last Year

Notably, that recent sale by Richard Deal is the biggest insider sale of Fair Isaac shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$1,391. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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. We note that the biggest single sale was only 22% of Richard Deal's holding.

In the last year Fair Isaac 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Fair Isaac 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Fair Isaac insiders own about US$925m worth of shares (which is 2.7% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Fair Isaac Insiders?

Insiders haven't bought Fair Isaac stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since Fair Isaac is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fair Isaac. Every company has risks, and we've spotted 2 warning signs for Fair Isaac you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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