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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in CrossFirst Bankshares, Inc.'s (NASDAQ:CFB) instance, it's good 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.
CrossFirst Bankshares Insider Transactions Over The Last Year
The Chief Financial Officer Benjamin Clouse made the biggest insider purchase in the last 12 months. That single transaction was for US$107k worth of shares at a price of US$14.49 each. That implies that an insider found the current price of US$14.51 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for CrossFirst Bankshares share holders is that insiders were buying at near the current price.
In the last twelve months CrossFirst Bankshares insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
CrossFirst 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.
CrossFirst Bankshares Insiders Bought Stock Recently
It's good to see that CrossFirst Bankshares insiders have made notable investments in the company's shares. In total, insiders bought US$121k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
Insider Ownership of CrossFirst Bankshares
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. Insiders own 5.9% of CrossFirst Bankshares shares, worth about US$44m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At CrossFirst Bankshares Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest CrossFirst Bankshares insiders are well aligned, and that they may think the share price is too low. Of course, the future is what matters most. So if you are interested in CrossFirst Bankshares, you should check out this free report on analyst forecasts for the company.
But note: CrossFirst 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.