First Financial Bankshares Insiders Placed Bullish Bets Worth US$2.52m
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of First Financial Bankshares, Inc. (NASDAQ:FFIN), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for First Financial Bankshares
The Last 12 Months Of Insider Transactions At First Financial Bankshares
The Independent Director Robert Nickles made the biggest insider purchase in the last 12 months. That single transaction was for US$482k worth of shares at a price of US$26.19 each. That means that even when the share price was higher than US$26.18 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months First Financial Bankshares insiders were buying shares, but not selling. They paid about US$29.24 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
First Financial Bankshares is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
First Financial Bankshares Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at First Financial Bankshares. In total, insiders bought US$291k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Does First Financial Bankshares Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that First Financial Bankshares insiders own 4.4% of the company, worth about US$164m. 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 Do The First Financial Bankshares Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about First Financial Bankshares. Looks promising! Of course, the future is what matters most. So if you are interested in First Financial Bankshares, you should check out this free report on analyst forecasts for the company.
But note: First Financial Bankshares 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.
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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.
