We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Southside Bancshares, Inc. (NASDAQ:SBSI).
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
Southside Bancshares Insider Transactions Over The Last Year
Tony Morgan made the biggest insider purchase in the last 12 months. That single transaction was for US$62k worth of shares at a price of US$31.15 each. That means that an insider was happy to buy shares at around the current price. That means they have been optimistic about the company in the past, though they may have changed their mind. We generally consider it a positive if insiders have been buying on market, even if the share price has increased a bit since then.
Happily, we note that in the last year insiders bought 3.52k shares for a total of US$112k. In the last twelve months there was more buying than selling by Southside Bancshares insiders. Their average price was about US$31.75. It’s great to see insiders putting their own cash into the company’s stock, albeit at below the recent share price (US$34.27). The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Southside Bancshares is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Have Southside Bancshares Insiders Traded Recently?
Chairman John Garrett bought just US$4.4k worth of shares in that time. That’s not much at all. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.
Does Southside 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. We usually like to see fairly high levels of insider ownership. It appears that Southside Bancshares insiders own 6.4% of the company, worth about US$73m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Southside Bancshares Insider Transactions Indicate?
Insider purchases have outweighed sales, in the last three months. But the difference isn’t much. However, our analysis of transactions over the last year is heartening. Insiders own shares in Southside Bancshares and we see no evidence to suggest they are worried about the future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course Southside Bancshares may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.