Insider Stock Buying Reaches US$970.4k On Southern First Bancshares
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Southern First Bancshares, Inc.'s (NASDAQ:SFST) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Southern First Bancshares
Southern First Bancshares Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Executive VP & CFO David Borrmann bought US$193k worth of shares at a price of US$27.75 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$37.54. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Southern First Bancshares 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Southern First Bancshares Insiders Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Southern First Bancshares. Independent Director David Ellison shelled out US$30k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
Does Southern First Bancshares Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Southern First Bancshares insiders own about US$20m worth of shares. That equates to 6.6% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Southern First Bancshares Insiders?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Southern First Bancshares and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Southern First Bancshares. Every company has risks, and we've spotted 1 warning sign for Southern First Bancshares you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
