ServisFirst Bancshares Insiders Placed Bullish Bets Worth US$779k

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of ServisFirst Bancshares, Inc. (NYSE:SFBS), that sends out a positive message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for ServisFirst Bancshares

ServisFirst Bancshares Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Lead Director James Filler bought US$281k worth of shares at a price of US$56.28 per share. That means that even when the share price was higher than US$51.59 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months ServisFirst Bancshares insiders were buying shares, but not selling. Their average price was about US$50.55. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of ServisFirst Bancshares

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that ServisFirst Bancshares insiders own 9.8% of the company, worth about US$274m. 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 Does This Data Suggest About ServisFirst Bancshares Insiders?

The fact that there have been no ServisFirst Bancshares insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like ServisFirst Bancshares insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that ServisFirst Bancshares is showing 2 warning signs in our investment analysis, and 1 of those is potentially serious...

But note: ServisFirst Bancshares may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.