Some First Commonwealth Financial Corporation (NYSE:FCF) shareholders may be a little concerned to see that insider Norman Montgomery recently sold a substantial US$697k worth of stock at a price of US$18.35 per share. That sale reduced their total holding by 43% which is hardly insignificant, but far from the worst we've seen.

First Commonwealth Financial Insider Transactions Over The Last Year

Notably, that recent sale by Norman Montgomery is the biggest insider sale of First Commonwealth Financial shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$18.60. 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. 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 43% of Norman Montgomery's stake.

In the last twelve months insiders purchased 15.92k shares for US$263k. On the other hand they divested 82.31k shares, for US$1.5m. In total, First Commonwealth Financial insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 2.4% of First Commonwealth Financial shares, worth about US$45m. 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 Commonwealth Financial Tell Us?

Insiders sold First Commonwealth Financial shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, First Commonwealth Financial 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. 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.

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.