We'd be surprised if ServisFirst Bancshares, Inc. (NYSE:SFBS) shareholders haven't noticed that an insider, Rodney Rushing, recently sold US$309k worth of stock at US$56.17 per share. On the bright side, that sale was only 1.3% of their holding, so we doubt it's very meaningful, on its own.
View our latest analysis for ServisFirst Bancshares
The Last 12 Months Of Insider Transactions At ServisFirst Bancshares
Notably, that recent sale by Rodney Rushing is the biggest insider sale of ServisFirst Bancshares shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$56.23, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 1.3% of Rodney Rushing's stake.
In the last twelve months insiders purchased 15.22k shares for US$766k. But they sold 5.50k shares for US$309k. In the last twelve months there was more buying than selling by ServisFirst Bancshares insiders. They paid about US$50.30 on average. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Does ServisFirst Bancshares Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that ServisFirst Bancshares insiders own 9.8% of the company, worth about US$294m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At ServisFirst Bancshares Tell Us?
An insider sold ServisFirst Bancshares shares recently, but they didn't buy any. But we take heart from prior transactions. We are also comforted by the high levels of insider ownership. So we're not too bothered by recent selling. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that ServisFirst Bancshares has 3 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.
But note: ServisFirst Bancshares 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 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.