Don't Ignore The Insider Selling In First Financial Bankshares
First Financial Bankshares Inc FFIN | 0.00 |
We wouldn't blame First Financial Bankshares, Inc. (NASDAQ:FFIN) shareholders if they were a little worried about the fact that Ronald Butler, the Executive VP & Chief Administrative Officer recently netted about US$524k selling shares at an average price of US$34.95. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 8.9%.
The Last 12 Months Of Insider Transactions At First Financial Bankshares
Notably, that recent sale by Ronald Butler is the biggest insider sale of First Financial Bankshares shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$34.12. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
In the last twelve months insiders purchased 35.18k shares for US$1.1m. On the other hand they divested 15.00k shares, for US$524k. In the last twelve months there was more buying than selling by First Financial Bankshares insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
First Financial Bankshares is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of First Financial Bankshares
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. First Financial Bankshares insiders own about US$188m worth of shares (which is 3.8% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About First Financial Bankshares Insiders?
Unfortunately, there has been more insider selling of First Financial Bankshares stock, than buying, in the last three months. But we take heart from prior transactions. And insider ownership remains quite considerable. So the recent selling doesn't worry us. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing First Financial Bankshares.
Of course First Financial Bankshares 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.
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.
