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We wouldn't blame First Financial Bankshares, Inc. (NASDAQ:FFIN) shareholders if they were a little worried about the fact that David Copeland, the Independent Director recently netted about US$2.4m selling shares at an average price of US$35.28. That's a big dump, and it decreased their holding size by 13%, which is notable but not too bad.
First Financial Bankshares Insider Transactions Over The Last Year
In fact, the recent sale by Independent Director David Copeland was not their only sale of First Financial Bankshares shares this year. They previously made an even bigger sale of -US$2.4m worth of shares at a price of US$35.25 per share. So what is clear is that an insider saw fit to sell at around the current price of US$33.28. 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.
In the last twelve months insiders purchased 40752 shares for US$1.2m. But they sold 161488 for US$5.6m. In total, First Financial Bankshares insiders sold more than they bought over the last year. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like First Financial Bankshares better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does First Financial Bankshares Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that First Financial Bankshares insiders own 4.9% of the company, worth about US$221m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The First Financial Bankshares Insider Transactions Indicate?
Unfortunately, there has been more insider selling of First Financial Bankshares stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that First Financial Bankshares is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.