We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in BOK Financial Corporation (NASDAQ:BOKF).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
BOK Financial Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by Patrick Piper for US$1.3m worth of shares, at about US$103 per share. So what is clear is that an insider saw fit to sell at around the current price of US$90.10. While their view may have changed since the sale, this is not a particularly positive fact. We usually pause to reflect on the potential that a stock has a high valuation, if insiders have been selling at around the current price.
Over the last year, we can see that insiders have bought 11.01k shares worth US$933k. But insiders sold 52.47k shares worth US$4.9m. All up, insiders sold more shares in BOK Financial than they bought, over the last year. They sold for an average price of about US$93.95. We don’t gain confidence from insider selling below the recent share price. Of course, the sales could be motivated for a multitude of reasons, so we shouldn’t jump to conclusions. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like BOK Financial better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
BOK Financial Insiders Are Selling The Stock
There was substantially more insider selling, than buying, of BOK Financial shares over the last three months. In total, insiders sold US$1.9m worth of shares in that time. On the other hand we note insiders bought US$455k worth of shares. Because the selling vastly outweighs the buying, we’d say this is a somewhat bearish sign.
Does BOK Financial 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. A high insider ownership often makes company leadership more mindful of shareholder interests. BOK Financial insiders own 54% of the company, currently worth about US$3.5b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About BOK Financial Insiders?
The insider sales have outweighed the insider buying, at BOK Financial, in the last three months. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. But it is good to see that BOK Financial is growing earnings. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for BOK Financial.
Of course BOK Financial may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.