Insider Buying: The Flagstar Bancorp, Inc. (NYSE:FBC) Executive VP & CFO Just Bought 5.5% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Flagstar Bancorp, Inc. (NYSE:FBC) Executive VP & CFO, James Ciroli, recently bought US$60k worth of stock, for US$30.12 per share. However, it only increased their shares held by 5.5%, and it wasn't a huge purchase by absolute value, either.

View our latest analysis for Flagstar Bancorp

The Last 12 Months Of Insider Transactions At Flagstar Bancorp

Notably, that recent purchase by Executive VP & CFO James Ciroli was not the only time they bought Flagstar Bancorp shares this year. They previously made an even bigger purchase of US$61k worth of shares at a price of US$30.41 per share. That implies that an insider found the current price of US$30.60 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Flagstar Bancorp insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was James Ciroli.

James Ciroli bought a total of 7.00k shares over the year at an average price of US$29.43. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Flagstar Bancorp

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Flagstar Bancorp insiders own about US$32m worth of shares. That equates to 1.9% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Flagstar Bancorp Insider Transactions Indicate?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Flagstar Bancorp insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Flagstar Bancorp that deserve your attention before buying any shares.

But note: Flagstar Bancorp may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.

This article by Simply Wall St is general in nature. 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.

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