Insider Spends US$482k Buying More Shares In First Financial Bankshares \
Potential First Financial Bankshares, Inc. (NASDAQ:FFIN) shareholders may wish to note that the Independent Director, Robert Nickles, recently bought US$482k worth of stock, paying US$26.19 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 22%.
See our latest analysis for First Financial Bankshares
First Financial Bankshares Insider Transactions Over The Last Year
Notably, that recent purchase by Robert Nickles is the biggest insider purchase of First Financial Bankshares shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$26.70. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for First Financial Bankshares share holders is that insiders were buying at near the current price.
While First Financial Bankshares insiders bought shares during the last year, they didn't sell. They paid about US$32.97 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
First Financial Bankshares is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. First Financial Bankshares insiders own about US$164m worth of shares (which is 4.3% of the company). 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?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about First Financial Bankshares. One for the watchlist, at least! 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. You'd be interested to know, that we found 1 warning sign for First Financial Bankshares and we suggest you have a look.
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, 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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