Some ServisFirst Bancshares, Inc. (NYSE:SFBS) shareholders may be a little concerned to see that the Executive VP & COO, Rodney Rushing, recently sold a substantial US$4.6m worth of stock at a price of US$82.18 per share. That's a big disposal, and it decreased their holding size by 13%, which is notable but not too bad.
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 what is clear is that an insider saw fit to sell at around the current price of US$78.92. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Rodney Rushing ditched 62.00k shares over the year. The average price per share was US$79.87. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. ServisFirst Bancshares insiders own 8.2% of the company, currently worth about US$353m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other 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. Every company has risks, and we've spotted 1 warning sign for ServisFirst Bancshares you should know about.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
