Yahoo Finance Quite a few insiders invested in First Community Bankshares, Inc. (NASDAQ:FCBC) last year which is positive news for shareholders
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of First Community Bankshares, Inc. (NASDAQ:FCBC), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for First Community Bankshares
The Last 12 Months Of Insider Transactions At First Community Bankshares
The Independent Director Richard Johnson made the biggest insider purchase in the last 12 months. That single transaction was for US$135k worth of shares at a price of US$26.99 each. That means that an insider was happy to buy shares at around the current price of US$29.53. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the First Community Bankshares insiders decided to buy shares at close to current prices.
In the last twelve months First Community Bankshares insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
First Community Bankshares is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
First Community Bankshares Insiders Bought Stock Recently
It's good to see that First Community Bankshares insiders have made notable investments in the company's shares. Specifically, Independent Director Richard Johnson bought US$135k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 12% of First Community Bankshares shares, worth about US$61m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At First Community Bankshares Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest First Community Bankshares insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing First Community Bankshares. While conducting our analysis, we found that First Community Bankshares has 1 warning sign and it would be unwise to ignore it.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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, but not derivative transactions.
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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.
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