Have Bank7 Corp. (NASDAQ:BSVN) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
May 07, 2022
NasdaqGS:BSVN
Source: Shutterstock

We'd be surprised if Bank7 Corp. (NASDAQ:BSVN) shareholders haven't noticed that the President, Thomas Travis, recently sold US$477k worth of stock at US$23.85 per share. On the bright side, that sale was only 5.5% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Bank7

Bank7 Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive Chairman of the Board, William Haines, sold US$21m worth of shares at a price of US$20.90 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$24.35. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. This single sale was just 35% of William Haines's stake.

In total, Bank7 insiders sold more than they bought over the last year. 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!

insider-trading-volume
NasdaqGS:BSVN Insider Trading Volume May 7th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Bank7 insiders own 59% of the company, worth about US$130m. 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 Bank7 Insider Transactions Indicate?

Insiders haven't bought Bank7 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. But since Bank7 is profitable and growing, we're not too worried by this. 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. You'd be interested to know, that we found 2 warning signs for Bank7 and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

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