It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Bank of South Carolina Corporation (NASDAQ:BKSC), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
We don’t think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Bank of South Carolina Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when President Fleetwood Hassell bought US$96k worth of shares at a price of US$17.47 per share. So it’s clear an insider wanted to buy, at around the current price. That means they have been optimistic about the company in the past, though they may have changed their mind. In any event it’s generally a positive if insiders are buying shares at around the current price.
Over the last year, we can see that insiders have bought 60.73k shares worth US$1.1m. But insiders sold 1.00k shares worth US$20k. Overall, Bank of South Carolina insiders were net buyers last year. They paid about US$18.66 on average. This is nice to see since it implies that insiders might see value around current prices (around US$18.20). You can see a visual depiction of insider transactions (by 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!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Bank of South Carolina Insiders Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at Bank of South Carolina. In total, insiders bought US$69k worth of shares in that time, and we didn’t record any sales whatsoever. This makes one think the business has some good points.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Bank of South Carolina insiders own about US$19m worth of shares. That equates to 19% of the company. 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 Bank of South Carolina Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Bank of South Carolina we think they are probably pretty confident of a bright future. Along with insider transactions, I recommend checking if Bank of South Carolina is growing revenue. This free chart of historic revenue and earnings should make that easy.
Of course Bank of South Carolina may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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