Stock Analysis

Don't Ignore The Fact That This Insider Just Sold Some Shares In BOK Financial Corporation (NASDAQ:BOKF)

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NasdaqGS:BOKF
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Some BOK Financial Corporation (NASDAQ:BOKF) shareholders may be a little concerned to see that insider Steven Bangert recently sold a substantial US$536k worth of stock at a price of US$89.33 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.0%.

See our latest analysis for BOK Financial

BOK Financial Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the President, Steven Bradshaw, sold US$650k worth of shares at a price of US$65.00 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$92.00. 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 3.8% of Steven Bradshaw's holding.

Happily, we note that in the last year insiders paid US$408k for 8.30k shares. But they sold 17.39k shares for US$1.3m. In total, BOK Financial insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NasdaqGS:BOKF Insider Trading Volume March 4th 2021

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Does BOK Financial Boast High 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. It's great to see that BOK Financial insiders own 56% of the company, worth about US$3.6b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At BOK Financial Tell Us?

Insiders sold BOK Financial shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that BOK Financial has 1 warning sign and it would be unwise to ignore this.

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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.

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What are the risks and opportunities for BOK Financial?

BOK Financial Corporation operates as the financial holding company for BOKF, NA that provides various financial products and services in Oklahoma, Texas, New Mexico, Northwest Arkansas, Colorado, Arizona, and Kansas/Missouri.

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Rewards

  • Trading at 24.9% below our estimate of its fair value

  • Earnings are forecast to grow 7.11% per year

Risks

  • Significant insider selling over the past 3 months

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