First BanCorp Insiders Sell Despite No Purchases
Recent insider selling at First BanCorp (NYSE: FBP) has caught the attention of investors. In the last year, there have been no insider purchases, but two instances of significant sales. The largest sale was made by Executive VP & Business Group Director Thomas McDonald, who sold $754k worth of shares at an average price of $22.11 per share.
This sale accounted for 35% of McDonald's holding, and occurred when the share price was below its current value of $28.51. Typically, insider selling below the current price is seen as a negative sign, suggesting that they were content with a lower valuation.
The other notable sale was made by Independent Chairman Roberto Herencia, who netted approximately $750k from selling shares at an average price of $28.48. This sale only accounted for 4.1% of their holding.
While First BanCorp's insiders do own a significant amount of shares in the company (2.5% of the company), our analysis suggests that these transactions don't necessarily instill confidence in the stock.