We wouldn't blame FirstCash Holdings, Inc. (NASDAQ:FCFS) shareholders if they were a little worried about the fact that Raul Ramos, the Senior Vice President of Latin American Operations recently netted about US$732k selling shares at an average price of US$231. That's a big disposal, and it decreased their holding size by 14%, which is notable but not too bad.

The Last 12 Months Of Insider Transactions At FirstCash Holdings

In the last twelve months, the biggest single sale by an insider was when the Independent Director, James Graves, sold US$807k worth of shares at a price of US$135 per share. That means that even when the share price was below the current price of US$222, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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. We note that the biggest single sale was only 31% of James Graves's holding.

FirstCash Holdings insiders didn't buy any shares 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 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).

Does FirstCash Holdings Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. FirstCash Holdings insiders own 8.4% of the company, currently worth about US$806m 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.

What Might The Insider Transactions At FirstCash Holdings Tell Us?

Insiders sold FirstCash Holdings shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since FirstCash Holdings is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. 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.

Of course FirstCash Holdings 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.

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.