We wouldn't blame First Interstate BancSystem, Inc. (NASDAQ:FIBK) shareholders if they were a little worried about the fact that Julie Scott Rose, a company insider, recently netted about US$599k selling shares at an average price of US$33.02. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.3%.

The Last 12 Months Of Insider Transactions At First Interstate BancSystem

The insider, Homer Scott, made the biggest insider sale in the last 12 months. That single transaction was for US$32m worth of shares at a price of US$32.14 each. That means that an insider was selling shares at slightly below the current price (US$33.93). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 50% of Homer Scott's holding.

In total, First Interstate BancSystem insiders sold more than they bought over 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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does First Interstate BancSystem Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. First Interstate BancSystem insiders own 8.7% of the company, currently worth about US$297m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About First Interstate BancSystem Insiders?

Insiders sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for First Interstate BancSystem and we suggest you have a look.

But note: First Interstate BancSystem 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.

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.