Trade Alert: The Independent Director Of Red River Bancshares, Inc. (NASDAQ:RRBI), Don Thompson, Has Just Spent US$183k Buying Shares

Investors who take an interest in Red River Bancshares, Inc. (NASDAQ:RRBI) should definitely note that the Independent Director, Don Thompson, recently paid US$40.68 per share to buy US$183k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 112%, potentially signalling some real optimism.

See our latest analysis for Red River Bancshares

The Last 12 Months Of Insider Transactions At Red River Bancshares

Over the last year, we can see that the biggest insider sale was by the insider, F. Hackmeyer, for US$423k worth of shares, at about US$42.30 per share. So we know that an insider sold shares at around the present share price of US$39.95. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Over the last year, we can see that insiders have bought 5.00k shares worth US$210k. But insiders sold 28180 shares worth US$1.2m. In total, Red River Bancshares insiders sold more than they bought over the last year. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 22% of Red River Bancshares shares, worth about US$64m. 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 Red River Bancshares Insiders?

It is good to see recent purchasing. On the other hand the transaction history, over the last year, isn't so positive. We don't take much heart from transactions by Red River Bancshares insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. Overall they seem reasonably aligned. 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. Be aware that Red River Bancshares is showing 2 warning signs in our investment analysis, and 1 of those can't be ignored...

But note: Red River 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, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.

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