Stock Analysis

Trade Alert: The Independent Director Of First Financial Bankshares, Inc. (NASDAQ:FFIN), Robert Nickles, Has Just Spent US$300k Buying 13% More Shares

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Investors who take an interest in First Financial Bankshares, Inc. (NASDAQ:FFIN) should definitely note that the Independent Director, Robert Nickles, recently paid US$32.75 per share to buy US$300k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 13%.

View our latest analysis for First Financial Bankshares

First Financial Bankshares Insider Transactions Over The Last Year

The Independent Director Michael Denny made the biggest insider purchase in the last 12 months. That single transaction was for US$499k worth of shares at a price of US$41.17 each. That means that even when the share price was higher than US$30.24 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While First Financial Bankshares insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGS:FFIN Insider Trading Volume March 19th 2023

First Financial Bankshares is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. First Financial Bankshares insiders own about US$184m worth of shares (which is 4.3% of the company). 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?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest First Financial Bankshares insiders are well aligned, and quite possibly think the share price is too low. Looks promising! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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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