This Insider Has Just Sold Shares In BancFirst

We wouldn't blame BancFirst Corporation (NASDAQ:BANF) shareholders if they were a little worried about the fact that David Rainbolt, the Executive Chairman recently netted about US$5.4m selling shares at an average price of US$111. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.5%.

Check out our latest analysis for BancFirst

The Last 12 Months Of Insider Transactions At BancFirst

Notably, that recent sale by David Rainbolt is the biggest insider sale of BancFirst 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$111, an insider wanted to cash in some shares. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 0.5% of David Rainbolt's holding.

Happily, we note that in the last year insiders paid US$94k for 1.01k shares. But they sold 217.42k shares for US$23m. 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does BancFirst Boast High Insider Ownership?

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 about US$1.2b worth of shares (which is 33% of the company). 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 Do The BancFirst Insider Transactions Indicate?

Insiders haven't bought BancFirst stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 2 warning signs we've spotted with BancFirst (including 1 which is significant).

Of course BancFirst may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.