Those following along with Southern National Bancorp of Virginia, Inc. (NASDAQ:SONA) will no doubt be intrigued by the recent purchase of shares by Matthew Switzer, Executive VP & CFO of the company, who spent a stonking US$644k on stock at an average price of US$12.88. That increased their holding by a full 625%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
The Last 12 Months Of Insider Transactions At Southern National Bancorp of Virginia
In the last twelve months, the biggest single purchase by an insider was when President Dennis Zember bought US$1.2m worth of shares at a price of US$11.57 per share. That means that an insider was happy to buy shares at around the current price of US$12.92. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.
While Southern National Bancorp of Virginia insiders bought shares during the last year, they didn't sell. 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!
Southern National Bancorp of Virginia is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Southern National Bancorp of Virginia
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Southern National Bancorp of Virginia insiders own 6.3% of the company, worth about US$20m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Southern National Bancorp of Virginia Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Southern National Bancorp of Virginia we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Southern National Bancorp of Virginia and understanding them should be part of your investment process.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
This article by Simply Wall St is general in nature. 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.
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