Looking at Simmons First National Corporation's (NASDAQ:SFNC ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Simmons First National
The Last 12 Months Of Insider Transactions At Simmons First National
The insider, Dean Bass, made the biggest insider sale in the last 12 months. That single transaction was for US$593k worth of shares at a price of US$19.78 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$16.98). So it is hard to draw any strong conclusion from it. Dean Bass was the only individual insider to sell shares in the last twelve months.
Over the last year, we can see that insiders have bought 75.98k shares worth US$1.2m. On the other hand they divested 65.00k shares, for US$1.4m. Dean Bass divested 65.00k shares over the last 12 months at an average price of US$21.56. 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders At Simmons First National Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Simmons First National. Not only was there no selling that we can see, but they collectively bought US$172k worth of shares. This is a positive in our book as it implies some confidence.
Does Simmons First National Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company 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. Simmons First National insiders own about US$35m worth of shares. That equates to 1.7% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Simmons First National Insider Transactions Indicate?
It is good to see recent purchasing. However, the longer term transactions are not so encouraging. The more recent transactions are a positive, but Simmons First National insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. So they seem pretty well aligned, overall. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Simmons First National and understanding it should be part of your investment process.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.