Anyone interested in Business First Bancshares, Inc. (NASDAQ:BFST) should probably be aware that the Independent Director, Mark Folse, recently divested US$296k worth of shares in the company, at an average price of US$29.63 each. That sale was 16% of their holding, so it does make us raise an eyebrow.

Business First Bancshares Insider Transactions Over The Last Year

Notably, that recent sale by Mark Folse is the biggest insider sale of Business First Bancshares shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$29.00. While insider selling is a negative, to us, it is more negative if the shares are sold 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.

Happily, we note that in the last year insiders paid US$187k for 7.51k shares. But they sold 23.79k shares for US$641k. Over the last year we saw more insider selling of Business First Bancshares shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Business First Bancshares better if I see some big insider buys.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Business First Bancshares insiders own about US$53m worth of shares. That equates to 5.6% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

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

The insider sales have outweighed the insider buying, at Business First Bancshares, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Business First Bancshares is growing earnings. 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. In terms of investment risks, we've identified 1 warning sign with Business First Bancshares and understanding it should be part of your investment process.

But note: Business First 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.