Insider Stock Buying Reaches US$765.7k On ServisFirst Bancshares
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in ServisFirst Bancshares, Inc.'s (NYSE:SFBS) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for ServisFirst Bancshares
The Last 12 Months Of Insider Transactions At ServisFirst Bancshares
In the last twelve months, the biggest single sale by an insider was when the insider, Rodney Rushing, sold US$309k worth of shares at a price of US$56.17 per share. That means that even when the share price was below the current price of US$62.82, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 1.3% of Rodney Rushing's stake. Rodney Rushing was the only individual insider to sell shares in the last twelve months.
Happily, we note that in the last year insiders paid US$766k for 15.22k shares. But they sold 5.50k shares for US$309k. In the last twelve months there was more buying than selling by ServisFirst Bancshares insiders. Their average price was about US$50.30. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
ServisFirst Bancshares Insiders Are Selling The Stock
The last quarter saw substantial insider selling of ServisFirst Bancshares shares. Specifically, insider Rodney Rushing ditched US$309k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Does ServisFirst Bancshares Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. ServisFirst Bancshares insiders own about US$321m worth of shares (which is 9.8% of the company). 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 Does This Data Suggest About ServisFirst Bancshares Insiders?
An insider sold stock recently, but they haven't been buying. But we take heart from prior transactions. We are also comforted by the high levels of insider ownership. So the recent selling doesn't worry us. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for ServisFirst Bancshares that deserve your attention before buying any shares.
Of course ServisFirst Bancshares 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 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.
