For BancFirst Corporation (NASDAQ:BANF) insiders, selling US$25m worth of stock earlier this year was a smart move.

By
Simply Wall St
Published
October 21, 2021
NasdaqGS:BANF
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BancFirst Corporation's (NASDAQ:BANF) stock rose 3.2% last week, but insiders who sold US$25m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of US$68.54, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for BancFirst

The Last 12 Months Of Insider Transactions At BancFirst

The Executive Chairman, David Rainbolt, made the biggest insider sale in the last 12 months. That single transaction was for US$5.2m worth of shares at a price of US$72.92 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$64.44. So it may not shed much light on insider confidence at current levels.

In the last twelve months insiders purchased 11.11k shares for US$624k. But they sold 367.69k shares for US$25m. Over the last year we saw more insider selling of BancFirst shares, than buying. 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!

insider-trading-volume
NasdaqGS:BANF Insider Trading Volume October 21st 2021

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

BancFirst Insiders Bought Stock Recently

Over the last quarter, BancFirst insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$507k worth of shares. This is a positive in our book as it implies some confidence.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. BancFirst insiders own about US$764m worth of shares (which is 36% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At BancFirst Tell Us?

It's certainly positive to see the recent insider purchases. However, the longer term transactions are not so encouraging. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, BancFirst insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of BancFirst.

But note: BancFirst 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.

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.

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