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Those following along with FB Financial Corporation (NYSE:FBK) will no doubt be intrigued by the recent purchase of shares by insider James Ayers, who spent a stonking US$552k on stock at an average price of US$34.94. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.1%.
Check out our latest analysis for FB Financial
The Last 12 Months Of Insider Transactions At FB Financial
The President of FB Ventures, Wilburn Evans, made the biggest insider sale in the last 12 months. That single transaction was for US$2.6m worth of shares at a price of US$43.05 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$34.83). So it may not tell us anything about how insiders feel about the current share price.
In the last twelve months insiders purchased 231.59k shares for US$7.9m. On the other hand they divested 70.99k shares, for US$3.1m. In the last twelve months there was more buying than selling by FB Financial insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
FB Financial is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. FB Financial insiders own 25% of the company, currently worth about US$410m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At FB Financial Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about FB Financial. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 2 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in FB Financial.