First Community Director of Specialty Business Lending & Non-Independent Director Fred Deutsch Sells 35% Of Holding
We'd be surprised if First Community Corporation (NASDAQ:FCCO) shareholders haven't noticed that the Director of Specialty Business Lending & Non-Independent Director, Fred Deutsch, recently sold US$345k worth of stock at US$34.52 per share. That sale was 35% of their holding, so it does make us raise an eyebrow.
The Last 12 Months Of Insider Transactions At First Community
In fact, the recent sale by Fred Deutsch was the biggest sale of First Community shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$34.75). 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. 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 35% of Fred Deutsch's stake.
All up, insiders sold more shares in First Community than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for First Community
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
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 8.1% of First Community shares, worth about US$27m. 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 Community Tell Us?
An insider sold First Community shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since First Community is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! 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. For example - First Community has 2 warning signs we think you should be aware of.
Of course First Community may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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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.