Investors should note that the independent director of First United CorporationIrvin Rudy recently made US$55,000 by selling shares, at an average price of US$27.52. The positive thing is that this is only a small sale and their stake is only down 4.9%.

Check out our latest analysis for First United

The Last 12 Months of Insider Transactions at First United

In fact, Irvin Rudy’s recent sale was the largest sale of First United shares by an insider in the past 12 months, according to our data. So clearly an insider wanted to take some money off the table, even slightly below the current price of US$27.66. When an insider sells below the current price, it suggests they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Keep in mind, however, that sellers may sell for a variety of reasons, so we can’t be sure what they think of the stock price. We note that the largest single sale was only 4.9% of Irvin Rudy’s holdings.

Over the last year, we can see that insiders bought 2.66k shares, worth US$51k. On the other hand, they sold 2.00k shares, for US$55k. Below is a visual representation of insider transactions (by companies and individuals) over the last 12 months. If you click on the chart, you will see all the individual transactions, including the share price, the individual, and the date!

I’ll like First United better if I see some big insider buys. While we wait, check this out free list of undervalued and small cap stocks with significant, recent, insider purchases.

Does First United have high insider ownership?

Looking at the total insider ownership in a company can help you determine whether they are well aligned with ordinary shareholders. Typically, the higher the insider ownership, the more likely it is that insiders are motivated to build the company for the long term. It appears that First United insiders own 8.7% of the company, worth about US$15 million. While this is a strong but not exceptional level of insider ownership, it is enough to indicate some alignment between management and smaller shareholders.

What can the insider transactions at First United tell us?

Insider selling has slightly outweighed insider buying over the past three months. But the net divestment isn’t enough to worry about. Recent insider selling makes us a little nervous, given the broader picture of First United insider transactions. But we do like the fact that insiders own a significant portion of the company. In addition to knowing about insider transactions that are happening, it’s useful to identify the risks First United faces. In terms of investment risks, we have identified 2 warning signs with First United and understanding them should be part of your investment process.

Naturally First United may not be the best stock to buy. You might want 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 authority. We currently only consider open market transactions and private disposals of direct interests, but not derivative transactions or indirect interests.

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This article from Simply Wall St is general in nature. We comment solely on historical data and analyst forecasts, using an objective methodology. Our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or financial situation. We aim to provide you with a long-term analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in the shares mentioned.

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