Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of First Financial Bankshares, Inc. (NASDAQ:FFIN), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for First Financial Bankshares
The Last 12 Months Of Insider Transactions At First Financial Bankshares
The Independent Director Robert Nickles made the biggest insider purchase in the last 12 months. That single transaction was for US$482k worth of shares at a price of US$26.19 each. We do like to see buying, but this purchase was made at well below the current price of US$30.09. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months First Financial Bankshares insiders were buying shares, but not selling. Their average price was about US$29.24. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
Insiders At First Financial Bankshares Have Bought Stock Recently
It's good to see that First Financial Bankshares insiders have made notable investments in the company's shares. Overall, six insiders shelled out US$291k for shares in the company -- and none sold. This makes one think the business has some good points.
Does First Financial Bankshares Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that First Financial Bankshares insiders own 4.1% of the company, worth about US$175m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About First Financial Bankshares Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest First Financial Bankshares insiders are well aligned, and quite possibly think the share price is too low. Nice! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: First Financial 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 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.