Potential Red River Bancshares, Inc. (NASDAQ:RRBI) shareholders may wish to note that the Independent Chairman, Teddy Price, recently bought US$110k worth of stock, paying US$99.89 for each share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Red River Bancshares Insider Transactions Over The Last Year

In fact, the recent purchase by Teddy Price was the biggest purchase of Red River Bancshares shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$102 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Red River Bancshares insider decided to buy shares at close to current prices. Teddy Price was the only individual insider to buy during the last year.

Teddy Price purchased 4.26k shares over the year. The average price per share was US$85.41. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Red River Bancshares 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 Red River Bancshares

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Red River Bancshares insiders own 19% of the company, currently worth about US$129m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Red River Bancshares 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. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Red River Bancshares. That's what I like to see! Of course, the future is what matters most.

But note: Red River Bancshares 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 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.