Anyone interested in First United Corporation (NASDAQ:FUNC) should probably be aware that the Executive VP & Chief Wealth Officer of First United Bank, Keith Sanders, recently divested US$218k worth of shares in the company, at an average price of US$43.68 each. The eyebrow raising move amounted to a reduction of 36% in their holding.

The Last 12 Months Of Insider Transactions At First United

In fact, the recent sale by Keith Sanders was the biggest sale of First United shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$45.59). 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. 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 only 36% of Keith Sanders's holding.

In the last twelve months insiders purchased 1.35k shares for US$49k. But insiders sold 8.00k shares worth US$338k. Over the last year we saw more insider selling of First United shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that First United insiders own 8.0% of the company, worth about US$23m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About First United Insiders?

Unfortunately, there has been more insider selling of First United stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, First United makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing First United.

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 of direct interests only, but not derivative transactions or indirect interests.

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.