Don't Ignore The Insider Selling In First Commonwealth Financial
Some First Commonwealth Financial Corporation (NYSE:FCF) shareholders may be a little concerned to see that insider Lee Lyon recently sold a substantial US$537k worth of stock at a price of US$21.46 per share. That's a big disposal, and it decreased their holding size by 43%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At First Commonwealth Financial
The insider, Norman Montgomery, made the biggest insider sale in the last 12 months. That single transaction was for US$697k worth of shares at a price of US$18.44 each. That means that an insider was selling shares at slightly below the current price (US$21.54). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. This single sale was just 43% of Norman Montgomery's stake.
In the last twelve months insiders purchased 8.92k shares for US$152k. But insiders sold 173.90k shares worth US$3.3m. All up, insiders sold more shares in First Commonwealth Financial than they bought, 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for First Commonwealth Financial
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Insider Ownership Of First Commonwealth Financial
For a common shareholder, it is worth checking how many shares are held by company 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. Insiders own 2.3% of First Commonwealth Financial shares, worth about US$50m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At First Commonwealth Financial Tell Us?
Insiders haven't bought First Commonwealth Financial stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that First Commonwealth Financial is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of First Commonwealth Financial.
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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.