Southern National Bancorp of Virginia, Inc. (NASDAQ:SONA) shareholders (or potential shareholders) will be happy to see that the President, Dennis Zember, recently bought a whopping US$1.2m worth of stock, at a price of US$11.57. That purchase boosted their holding by 200%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
The Last 12 Months Of Insider Transactions At Southern National Bancorp of Virginia
Notably, that recent purchase by Dennis Zember is the biggest insider purchase of Southern National Bancorp of Virginia shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$12.09. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Southern National Bancorp of Virginia insiders decided to buy shares at close to current prices.
In the last twelve months Southern National Bancorp of Virginia insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 5.9% of Southern National Bancorp of Virginia shares, worth about US$17m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Southern National Bancorp of Virginia Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Southern National Bancorp of Virginia. Case in point: We've spotted 2 warning signs for Southern National Bancorp of Virginia you should be aware of.
But note: Southern National Bancorp of Virginia 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, 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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