President & Director of South Plains Financial Picks Up 1.7% More Stock \
Investors who take an interest in South Plains Financial, Inc. (NASDAQ:SPFI) should definitely note that the President & Director, Cory Newsom, recently paid US$23.59 per share to buy US$106k worth of the stock. Although the purchase only increased their holding by 1.7%, it is still a solid purchase in our view.
See our latest analysis for South Plains Financial
South Plains Financial Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Noe Valles for US$870k worth of shares, at about US$29.00 per share. That means that an insider was happy to buy shares at above the current price of US$23.28. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders paid US$1.6m for 59.48k shares. On the other hand they divested 25.00k shares, for US$664k. In total, South Plains Financial insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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).
Does South Plains Financial 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. South Plains Financial insiders own about US$72m worth of shares. That equates to 18% 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.
What Might The Insider Transactions At South Plains Financial Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of South Plains Financial we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 2 warning signs for South Plains Financial (of which 1 can't be ignored!) you should know about.
But note: South Plains Financial 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.
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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.
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