Yahoo Finance Insider Stock Buying Reaches US$1.02m On BOK Financial
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 BOK Financial Corporation (NASDAQ:BOKF), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for BOK Financial
BOK Financial Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Steven Bangert, for US$346k worth of shares, at about US$81.59 per share. That means that even when the share price was below the current price of US$87.17, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 5.6% of Steven Bangert's stake. Steven Bangert was the only individual insider to sell shares in the last twelve months.
Happily, we note that in the last year insiders paid US$1.0m for 12.53k shares. But insiders sold 9.90k shares worth US$845k. In the last twelve months there was more buying than selling by BOK Financial insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
BOK Financial Insiders Are Selling The Stock
The last three months saw significant insider selling at BOK Financial. Specifically, insider Steven Bangert ditched US$346k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. BOK Financial insiders own 60% of the company, currently worth about US$3.4b based on the recent share price. 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 BOK Financial Tell Us?
An insider hasn't bought BOK Financial stock in the last three months, but there was some selling. But we take heart from prior transactions. And insider ownership remains quite considerable. So the recent selling doesn't worry us. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 2 warning signs for BOK Financial (1 doesn't sit too well with us) you should be aware of.
Of course BOK Financial 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.
