Bullish insiders bet US$3.5m on First Financial Bankshares, Inc. (NASDAQ:FFIN)
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in First Financial Bankshares, Inc.'s (NASDAQ:FFIN) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for First Financial Bankshares
First Financial Bankshares Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Michael Denny for US$499k worth of shares, at about US$41.17 per share. That means that an insider was happy to buy shares at above the current price of US$34.25. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While First Financial Bankshares insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
First Financial Bankshares Insiders Bought Stock Recently
It's good to see that First Financial Bankshares insiders have made notable investments in the company's shares. Overall, six insiders shelled out US$605k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Does First Financial Bankshares Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. First Financial Bankshares insiders own 4.3% of the company, currently worth about US$208m based on the recent share price. 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?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest First Financial Bankshares insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for 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, but not derivative transactions.
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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.
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