Have Insiders Sold BancFirst Shares Recently?

We wouldn't blame BancFirst Corporation (NASDAQ:BANF) shareholders if they were a little worried about the fact that Darryl Schmidt, the Director recently netted about US$610k selling shares at an average price of US$122. However, that sale only accounted for 8.1% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for BancFirst

BancFirst Insider Transactions Over The Last Year

The Non-Executive Chairman of the Board, David Rainbolt, made the biggest insider sale in the last 12 months. That single transaction was for US$5.4m worth of shares at a price of US$111 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$119. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 0.5% of David Rainbolt's holding.

Over the last year we saw more insider selling of BancFirst shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of BancFirst

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. BancFirst insiders own 32% of the company, currently worth about US$1.3b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The BancFirst Insider Transactions Indicate?

Insiders sold BancFirst shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that BancFirst is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing BancFirst. In terms of investment risks, we've identified 1 warning sign with BancFirst and understanding it should be part of your investment process.

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 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.