We wouldn't blame Fiserv, Inc. (NYSE:FI) shareholders if they were a little worried about the fact that Kenneth Best, the Chief Accounting Officer recently netted about US$1.2m selling shares at an average price of US$128. That's a big disposal, and it decreased their holding size by 23%, which is notable but not too bad.
View our latest analysis for Fiserv
The Last 12 Months Of Insider Transactions At Fiserv
In the last twelve months, the biggest single sale by an insider was when the Chief Operating Officer, Guy Chiarello, sold US$3.0m worth of shares at a price of US$116 per share. That means that an insider was selling shares at slightly below the current price (US$131). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 14% of Guy Chiarello's holding.
In the last year Fiserv insiders didn't buy any company stock. 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!
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Does Fiserv 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Fiserv insiders own about US$451m worth of shares (which is 0.6% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Fiserv Insiders?
An insider sold Fiserv shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Fiserv is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 2 warning signs with Fiserv and understanding these should be part of your investment process.
Of course Fiserv 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.