Even if it's not a huge purchase, we think it was good to see that William Brighton, the Independent Director of First Financial Corporation (NASDAQ:THFF) recently shelled out US$98k to buy stock, at US$48.99 per share. Although the purchase is not a big one, increasing their shareholding by only 9.1%, it can be interpreted as a good sign.

See our latest analysis for First Financial

The Last 12 Months Of Insider Transactions At First Financial

Notably, that recent purchase by William Brighton is the biggest insider purchase of First Financial shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$49.84. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for First Financial share holders is that insiders were buying at near the current price.

Over the last year, we can see that insiders have bought 7.45k shares worth US$352k. But they sold 1.10k shares for US$57k. In total, First Financial insiders bought more than they sold 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of First Financial

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 5.2% of First Financial shares, worth about US$30m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About First Financial Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest First Financial insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing First Financial. At Simply Wall St, we found 1 warning sign for First Financial that deserve your attention before buying any shares.

Of course First Financial may not be the best stock to buy. So you may wish 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 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.