Great news for First Business Financial Services, Inc. (NASDAQ:FBIZ): Insiders acquired stock in large numbers last year

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of First Business Financial Services, Inc. (NASDAQ:FBIZ), it sends a favourable message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for First Business Financial Services

First Business Financial Services Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Chair of the Board Gerald Kilcoyne for US$165k worth of shares, at about US$32.99 per share. That implies that an insider found the current price of US$35.57 per share to be enticing. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months insiders purchased 6.84k shares for US$226k. But insiders sold 3.01k shares worth US$113k. Overall, First Business Financial Services insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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.

Insiders At First Business Financial Services Have Sold Stock Recently

The last quarter saw substantial insider selling of First Business Financial Services shares. Specifically, General Counsel Barbara Conley ditched US$113k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 6.5% of First Business Financial Services shares, worth about US$20m. 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 Business Financial Services Tell Us?

An insider hasn't bought First Business Financial Services stock in the last three months, but there was some selling. But we take heart from prior transactions. It's good to see insiders are shareholders. So we're not overly bothered by recent selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing First Business Financial Services. Our analysis shows 2 warning signs for First Business Financial Services (1 is a bit concerning!) and we strongly recommend you look at them before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, 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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