On August 9, 2023, Jesse Jackson, the Executive Vice President and President of Financial Institutions at Business First Bancshares Inc, sold 3,000 shares of the company. This move has sparked interest among investors and analysts alike, as insider trading activities often provide valuable insights into a company's prospects.
Business First Bancshares Inc is a banking organization based in the United States. The company, through its subsidiaries, provides personal and commercial banking services to small to mid-sized businesses and individuals. Its services include checking accounts, savings accounts, mortgages, consumer loans, business loans, credit cards, and other financial services.
Over the past year, Jesse Jackson has not purchased any shares but has sold a total of 3,000 shares. This recent sale is the only insider sell activity for the company over the past year, which has seen 15 insider buys.
The shares were sold at a price of $20.87 each, giving the stock a market cap of $533.495 million. The price-earnings ratio stands at 8.25, lower than both the industry median of 8.71 and the company's historical median price-earnings ratio. This suggests that the stock is currently undervalued.
The GuruFocus Value for Business First Bancshares Inc is $26.51, indicating a price-to-GF-Value ratio of 0.79. This means the stock is modestly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
The insider sell activity by Jesse Jackson, coupled with the stock's current undervaluation, may suggest that the executive believes the stock's price has peaked or that he is simply cashing in on his holdings. However, with 15 insider buys over the past year, the overall insider sentiment seems to be bullish. Investors should keep a close eye on further insider trading activities for more clues about the company's future prospects.
It's important to note that insider trading activities should not be used as the sole basis for any investment decisions. While they can provide valuable insights, investors should also consider other factors such as the company's financial health, market conditions, and industry trends before making investment decisions.
