Anyone interested in Business First Bancshares, Inc. (NASDAQ:BFST) should probably be aware that a company insider, George Cummings, recently divested US$324k worth of shares in the company, at an average price of US$27.92 each. On the bright side, that sale was only 3.7% of their holding, so we doubt it's very meaningful, on its own.

Business First Bancshares Insider Transactions Over The Last Year

In fact, the recent sale by insider George Cummings was not their only sale of Business First Bancshares shares this year. They previously made an even bigger sale of -US$560k worth of shares at a price of US$28.00 per share. That means that even when the share price was slightly below the current price of US$28.24, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 5.5% of George Cummings's stake.

In the last twelve months insiders purchased 6.13k shares for US$152k. But they sold 85.30k shares for US$2.4m. In total, Business First Bancshares insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 5.4% of Business First Bancshares shares, worth about US$50m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Business First Bancshares Tell Us?

An insider hasn't bought Business First Bancshares stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Business First Bancshares makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.