Those following along with Simmons First National Corporation (NASDAQ:SFNC) will no doubt be intrigued by the recent purchase of shares by George Makris, CEO & Executive Chairman of the company, who spent a stonking US$844k on stock at an average price of US$18.50. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 6.7%.

Simmons First National Insider Transactions Over The Last Year

Notably, that recent purchase by George Makris is the biggest insider purchase of Simmons First National 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$19.68. That means they have been optimistic about the company in the past, though they may have changed their mind. 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 Simmons First National share holders is that insiders were buying at near the current price.

Over the last year, we can see that insiders have bought 100.35k shares worth US$1.9m. But insiders sold 2.23k shares worth US$55k. In total, Simmons First National insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Simmons First National insiders own 1.5% of the company, worth about US$42m. 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 Do The Simmons First National Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Simmons First National shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.