Insiders At First Financial Bankshares Sold US$1.3m In Stock, Alluding To Potential Weakness

The fact that multiple First Financial Bankshares, Inc. (NASDAQ:FFIN) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At First Financial Bankshares

The Chairman & CEO, F. Dueser, made the biggest insider sale in the last 12 months. That single transaction was for US$1.0m worth of shares at a price of US$40.73 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$36.32. So it is hard to draw any strong conclusion from it.

Happily, we note that in the last year insiders paid US$486k for 13.67k shares. On the other hand they divested 32.00k shares, for US$1.3m. In total, First Financial Bankshares insiders sold more than they bought over the last year. 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!

View our latest analysis for First Financial Bankshares

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Insiders At First Financial Bankshares Have Bought Stock Recently

It's good to see that First Financial Bankshares insiders have made notable investments in the company's shares. Overall, three insiders shelled out US$228k for shares in the company -- and none sold. That shows some optimism about the company's future.

Insider Ownership Of First Financial Bankshares

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 First Financial Bankshares insiders own 3.8% of the company, worth about US$193m. 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 Do The First Financial Bankshares Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. But we can't say the same for the transactions over the last 12 months. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, First Financial Bankshares insiders are reasonably well aligned, and optimistic for the future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for First Financial Bankshares.

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 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.