Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of CrossFirst Bankshares, Inc. (NASDAQ:CFB), it sends a favourable 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.
Check out our latest analysis for CrossFirst Bankshares
CrossFirst Bankshares Insider Transactions Over The Last Year
The Chief Accounting Officer Michael Daley made the biggest insider purchase in the last 12 months. That single transaction was for US$98k worth of shares at a price of US$9.75 each. So it's clear an insider wanted to buy, at around the current price, which is US$9.86. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for CrossFirst Bankshares share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 18.60k shares worth US$188k. But they sold 2.50k shares for US$31k. In total, CrossFirst Bankshares insiders bought more than they sold over the last year. 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 CrossFirst Bankshares
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. CrossFirst Bankshares insiders own about US$31m worth of shares. That equates to 6.4% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At CrossFirst Bankshares Tell Us?
It doesn't really mean much that no insider has traded CrossFirst Bankshares shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think CrossFirst Bankshares insiders are doubting the company, and they do own shares. 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.