South Plains Financial Independent Director Acquires 26% More Stock
South Plains Financial, Inc. (NASDAQ:SPFI) shareholders (or potential shareholders) will be happy to see that the Independent Director, Noe Valles, recently bought a whopping US$1.3m worth of stock, at a price of US$25.00. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 26%.
View our latest analysis for South Plains Financial
The Last 12 Months Of Insider Transactions At South Plains Financial
Notably, that recent purchase by Noe Valles is the biggest insider purchase of South Plains Financial 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$25.79. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the South Plains Financial insiders decided to buy shares at close to current prices.
Happily, we note that in the last year insiders paid US$2.9m for 110.48k shares. But insiders sold 54.60k shares worth US$1.5m. In total, South Plains Financial insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
South Plains Financial 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 South Plains Financial
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. Insiders own 18% of South Plains Financial shares, worth about US$77m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other 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. For example, South Plains Financial has 2 warning signs (and 1 which is a bit unpleasant) we think 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.
