Is First Financial Bankshares Stock a Buy After a Member of the Board Bought Nearly 2,000 Shares?

Sally Pope Davis, a member of the Board of Directors of First Financial Bankshares (NASDAQ:FFIN), purchased 1,700 shares in the open market for $52,241 on Oct. 31, 2025, according to a SEC Form 4 filing.

Transaction summary

Transaction value is based on the SEC Form 4 reported price ($30.73); post-transaction value is based on the same price ($30.73).

Key questions

How significant is this purchase relative to Ms. Davis' recent trading activity?
The 1,700-share acquisition is Ms. Davis' second-largest direct purchase in the past year, following an 1,800-share buy in June 2024. Her direct holdings grew more than 100% from June 2024 to October 2025, rising from 1,800 to 6,971 shares.

What proportion of direct holdings did this transaction represent?
The purchase increased Ms. Davis' direct ownership by 32.25% compared to her pre-trade position. All recent transactions have been purchases, with no reported sales or gifts over the last five filings.

How does the transaction align with recent share price performance?
The purchase was executed at $30.73 per share. Shares declined 25% over the past year (calendar year basis, as of the transaction date), indicating the purchase occurred during a period of relative underperformance.

What is Ms. Davis' current direct ownership value in the company?
Following the transaction, Ms. Davis directly holds 6,971 shares, valued at approximately $215,543 as of market close on November 3, 2025.

Company overview

* 1-year price change (calendar year, -13.32%) calculated as of market close on November 3, 2025.

Company snapshot

First Financial Bankshares, Inc. is a regional bank holding company headquartered in Abilene, Texas, with 78 financial centers across the state as of December 31, 2021. The company leverages its local presence and comprehensive suite of financial services to serve the Texas regional banking sector.

First Financial Bankshares offers a full suite of commercial and personal banking products, including deposit accounts, commercial and consumer loans, trust and wealth management, securities brokerage, and retirement plan administration.

It serves businesses, professionals, and individuals across Texas, with a focus on commercial clients, agricultural operations, and high-net-worth individuals seeking trust and asset management solutions.

Foolish take

Board member Sally Pope Davis' purchase of First Financial Bankshares stock comes on the day shares hit a 52-week low of $30.19. Her buy suggests she has a bullish outlook towards the company.

First Financial Bankshares stock is down due to a few factors. In the third quarter, the company reported net income of $52.27 million, which was a decline from the $55.31 million earned in the same quarter a year ago. The drop was attributed to a $21.55 million credit loss as a result of fraudulent activity associated with a commercial borrower.

Management stated this fraud was an isolated incident, but the magnitude was significant enough to weigh on the stock price. Perhaps the transitory nature of this situation contributed to Ms. Davis' belief in the company's long-term prospects.

After all, First Financial's year-to-date earnings growth was nearly 12% higher compared to 2024. Its net interest income has grown for four consecutive quarters to $127 million in Q3, up from $107.1 million a year ago.

If not for the fraud, First Financial's Q3 diluted earnings per share (EPS) would have increased year over year. Instead, EPS dropped to $0.36 compared to $0.39 in Q3 last year.

If the fraud is indeed isolated to one bad actor, then First Financial's performance before Q3 suggests it is likely to bounce back in Q4, making it a worthwhile stock to consider investing in.

Glossary

Director: A member of a company's board responsible for overseeing management and major decisions.
Open market purchase: Buying company shares through public exchanges rather than via private transactions or company programs.
SEC Form 4: A required filing disclosing insider trades by company officers, directors, or significant shareholders.
Direct ownership: Shares held personally by an individual, not through trusts or indirect accounts.
Insider trading: Buying or selling a company's stock by individuals with access to nonpublic, material information.
Filing: An official document submitted to a regulatory body, such as the SEC, for compliance or disclosure.
Transaction value: The total dollar amount paid or received in a specific stock purchase or sale.
Post-transaction: Refers to the state of holdings or values after a trade or transaction is completed.
Trust and wealth management: Financial services that help clients manage assets, plan estates, and administer trusts.
Brokerage: A service or firm that facilitates buying and selling of securities for clients.
Retirement plan administration: Managing and overseeing retirement savings plans, ensuring compliance and proper recordkeeping.
TTM: The 12-month period ending with the most recent quarterly report.

Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.