Yahoo Finance Have Insiders Been Buying First Business Financial Services, Inc. (NASDAQ:FBIZ) Shares This Year?
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell First Business Financial Services, Inc. (NASDAQ:FBIZ), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
Check out our latest analysis for First Business Financial Services
First Business Financial Services Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chair of the Board Gerald Kilcoyne bought US$100k worth of shares at a price of US$19.99 per share. That means that an insider was happy to buy shares at around the current price. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In any event it's generally a positive if insiders are buying shares at around the current price.
In the last twelve months insiders purchased 9.63k shares for US$197k. But insiders sold 5.78k shares worth US$131k. In total, First Business Financial Services insiders bought more than they sold over the last year. Their average price was about US$20.43. These transactions suggest that insiders have considered the current price of US$20.34 attractive. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Have First Business Financial Services Insiders Traded Recently?
In the last quarter we saw Daniel Olszewski spend US$52k on shares. That's only a tiny bit more than the sales, worth US$51k. Looking at the net result, we don't think these recent trades shed much light on how insiders, as a group, are feeling about the company's prospects.
Does First Business Financial Services Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 7.3% of First Business Financial Services shares, worth about US$13m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The First Business Financial Services Insider Transactions Indicate?
Insider sales and purchases have netted out over the last three months, so it's hard to draw any conclusion from recent trading. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think First Business Financial Services insiders are doubting the company, and they do own shares. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: First Business Financial Services may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
