From what we can see, insiders were net sellers in ServisFirst Bancshares, Inc.'s (NYSE:SFBS ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

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.

ServisFirst Bancshares Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive VP & COO, Rodney Rushing, sold US$309k worth of shares at a price of US$56.17 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$77.22. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 1.3% of Rodney Rushing's holding. Rodney Rushing was the only individual insider to sell 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!

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.

Does ServisFirst Bancshares Boast High 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. It's great to see that ServisFirst Bancshares insiders own 8.3% of the company, worth about US$363m. 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?

It doesn't really mean much that no insider has traded ServisFirst Bancshares shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the ServisFirst Bancshares insiders selling. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for ServisFirst Bancshares.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com