Don't Ignore The Insider Selling In ServisFirst Bancshares

We wouldn't blame ServisFirst Bancshares, Inc. (NYSE:SFBS) shareholders if they were a little worried about the fact that Rodney Rushing, the Executive VP & COO recently netted about US$4.6m selling shares at an average price of US$82.18. That's a big disposal, and it decreased their holding size by 13%, which is notable but not too bad.

Check out our latest analysis for ServisFirst Bancshares

The Last 12 Months Of Insider Transactions At ServisFirst Bancshares

Notably, that recent sale by Rodney Rushing is the biggest insider sale of ServisFirst Bancshares shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$78.92. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Rodney Rushing sold a total of 62.00k shares over the year at an average price of US$79.87. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like ServisFirst Bancshares better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does ServisFirst Bancshares Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. ServisFirst Bancshares insiders own about US$353m worth of shares (which is 8.2% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At ServisFirst Bancshares Tell Us?

An insider sold ServisFirst Bancshares shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for ServisFirst Bancshares you should be aware of.

Of course ServisFirst Bancshares may not be the best stock to buy. So you may wish to see this free collection of high quality 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.