It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Bank First National Corporation (NASDAQ:BFC).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
Bank First National Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by President Michael Molepske for US$179k worth of shares, at about US$48.23 per share. That means that an insider was happy to buy shares at around the current price. Of course they may have changed their mind. But this suggests they are optimistic. Nonetheless, we consider it positive if insiders want to buy at around the current share price.
In the last twelve months insiders paid US$193k for 3.99k shares purchased. Overall, Bank First National insiders were net buyers last year. The average buy price was around US$48.29. Although they bought at below the recent price of US$56.20 per share, it is good to see that insiders are willing to invest in the company. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Are Bank First National Insiders Buying Or Selling?
We’ve only seen a tiny insider purchase valued at US$4.9k, in the last three months. Looking at the net result, we don’t think these recent trades shed much light on how insiders, as a group, are feeling about the company’s prospects.
Insider Ownership of Bank First National
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Bank First National insiders own about US$48m worth of shares. That equates to 13% of the company. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Bank First National Insiders?
We note a that there has been a tad more insider buying than selling, recently. But the difference isn’t much. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Bank First National and we see no evidence to suggest they are worried about the future. Of course, the future is what matters most. So if you are interested in Bank First National, you should check out this free report on analyst forecasts for the company.
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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.