Anyone interested in First Business Financial Services, Inc. (NASDAQ:FBIZ) should probably be aware that the Executive Vice President, Mark Meloy, recently divested US$200k worth of shares in the company, at an average price of US$40.05 each. However, the silver lining is that the sale only reduced their total holding by 8.5%, so we're hesitant to read anything much into it, on its own.

The Last 12 Months Of Insider Transactions At First Business Financial Services

In the last twelve months, the biggest single sale by an insider was when the Chief Human Resources Officer, Jodi Chandler, sold US$260k worth of shares at a price of US$31.83 per share. That means that even when the share price was below the current price of US$42.11, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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 Jodi Chandler's holding.

In the last twelve months insiders purchased 807.00 shares for US$29k. But they sold 14.63k shares for US$510k. All up, insiders sold more shares in First Business Financial Services than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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).

Insider Ownership Of First Business Financial Services

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 7.1% of First Business Financial Services shares, worth about US$24m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At First Business Financial Services Tell Us?

The stark truth for First Business Financial Services is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But since First Business Financial Services is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. 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. In terms of investment risks, we've identified 1 warning sign with First Business Financial Services and understanding this should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.

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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.