On September 13, 2023, Jonathan Scott, Director and 10% Owner of First Interstate BancSystem Inc (FIBK, Financial), sold 44,000 shares of the company. This move is part of a larger trend for the insider, who over the past year has sold a total of 126,500 shares and purchased none.
Jonathan Scott is a significant figure within First Interstate BancSystem Inc, a financial institution that provides a range of banking products and services to individuals, businesses, municipalities, and other entities. The company operates through a network of banking offices, offering commercial and consumer banking services, including demand, savings, time deposit accounts, and checking accounts. It also provides commercial loans, real estate loans, consumer loans, mortgage loans, and other financial products and services.
The insider's recent sell has raised eyebrows among investors and analysts, prompting a closer look at the company's insider trading history and its relationship with the stock price.
The insider transaction history for First Interstate BancSystem Inc shows a total of 3 insider buys over the past year, compared to 15 insider sells over the same timeframe. This trend suggests a more bearish sentiment among the company's insiders, which could potentially impact the stock price.
On the day of the insider's recent sell, shares of First Interstate BancSystem Inc were trading for $24.87 apiece, giving the stock a market cap of $2.68 billion. This valuation is based on a price-earnings ratio of 9.09, which is higher than the industry median of 8.39 but lower than the company’s historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance, First Interstate BancSystem Inc is significantly undervalued. With a price of $24.87 and a GuruFocus Value of $39.79, the stock has a price-to-GF-Value ratio of 0.63.
In conclusion, the recent sell by Jonathan Scott, coupled with the overall insider sell trend, may raise concerns among investors. However, the company's undervalued status according to the GuruFocus Value suggests potential for growth. As always, investors are advised to conduct their own thorough research before making any investment decisions.
