On September 13, 2023, Julie Scott, a 10% owner of First Interstate BancSystem Inc (FIBK, Financial), sold 40,000 shares of the company. This move is part of a larger trend for the insider, who has sold a total of 518,500 shares over the past year and has not made any purchases.
Julie Scott is a significant figure within First Interstate BancSystem Inc, holding a 10% ownership stake. The company is a financial institution that provides a range of banking products and services to individuals, businesses, municipalities, and other entities throughout the United States. Its services include commercial and consumer banking, treasury services, wealth management, and mortgage services.
The insider's recent sell-off comes amidst a broader trend of insider selling within the company. Over the past year, there have been 14 insider sells and only 3 insider buys. This could potentially signal a lack of confidence in the company's future prospects amongst its insiders.
On the day of the insider's recent sell, shares of First Interstate BancSystem Inc were trading for $25.05 apiece, giving the company a market cap of $2.69 billion. This is significantly lower than the company's GuruFocus Value of $39.79 per share.
The company's price-earnings ratio stands at 9.12, which is higher than the industry median of 8.29 but lower than the company's historical median price-earnings ratio. Despite this, the company's price-to-GF-Value ratio of 0.63 suggests that the stock is significantly undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance from Morningstar analysts.
While the insider's recent sell-off may raise some eyebrows, it's important to note that the company's stock appears to be undervalued based on its GF Value. This could potentially present an attractive buying opportunity for investors who believe in the company's long-term prospects.
However, potential investors should also consider the broader trend of insider selling within the company. This could potentially signal a lack of confidence in the company's future prospects amongst its insiders, which is something that investors should take into account when making their investment decisions.
As always, it's important for investors to do their own research and consider a variety of factors before making any investment decisions.
