Anyone interested in BancFirst Corporation (NASDAQ:BANF) should probably be aware that a company insider, D. Hannah, recently divested US$320k worth of shares in the company, at an average price of US$107 each. That sale was 14% of their holding, so it does make us raise an eyebrow.

The Last 12 Months Of Insider Transactions At BancFirst

Notably, that recent sale by insider D. Hannah was not the only time they sold BancFirst shares this year. Earlier in the year, they fetched US$90.07 per share in a -US$1.2m sale. So it's clear an insider wanted to take some cash off the table, even below the current price of US$105. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 30% of D. Hannah's holding.

Over the last year, we can see that insiders have bought 1.18k shares worth US$105k. But they sold 27.53k shares for US$2.5m. All up, insiders sold more shares in BancFirst than they bought, over the last year. 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does BancFirst Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. BancFirst insiders own about US$1.2b worth of shares (which is 34% 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 BancFirst Insider Transactions Indicate?

The stark truth for BancFirst is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. 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. Every company has risks, and we've spotted 2 warning signs for BancFirst (of which 1 is significant!) you should know about.

But note: BancFirst 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.

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