Have Insiders Sold Fair Isaac Shares Recently?

Some Fair Isaac Corporation (NYSE:FICO) shareholders may be a little concerned to see that the Executive Vice President of Scores, James Wehmann, recently sold a substantial US$8.1m worth of stock at a price of US$2,320 per share. However, that sale only accounted for 6.7% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for Fair Isaac

The Last 12 Months Of Insider Transactions At Fair Isaac

Over the last year, we can see that the biggest insider sale was by the Executive VP & Chief Human Resources Officer, Richard Deal, for US$19m worth of shares, at about US$1,390 per share. That means that an insider was selling shares at slightly below the current price (US$2,382). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 22% of Richard Deal's holding.

Fair Isaac insiders didn't buy any shares over the last year. 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!

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

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Fair Isaac insiders own about US$1.5b worth of shares (which is 2.6% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Fair Isaac Insider Transactions Indicate?

An insider hasn't bought Fair Isaac stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Fair Isaac is growing earnings. 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 2 warning signs for Fair Isaac and we suggest you have a look.

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.

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

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.