Southern First Bancshares Executive VP & CFO Acquires 20% More Stock
Even if it's not a huge purchase, we think it was good to see that David Borrmann, the Executive VP & CFO of Southern First Bancshares, Inc. (NASDAQ:SFST) recently shelled out US$56k to buy stock, at US$29.50 per share. That purchase might not be huge but it did increase their holding by 20%.
Check out our latest analysis for Southern First Bancshares
The Last 12 Months Of Insider Transactions At Southern First Bancshares
Notably, that recent purchase by Executive VP & CFO David Borrmann was not the only time they bought Southern First Bancshares shares this year. Earlier in the year, they paid US$27.75 per share in a US$193k purchase. That means that an insider was happy to buy shares at around the current price of US$30.05. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Southern First Bancshares insiders decided to buy shares at close to current prices.
While Southern First Bancshares insiders bought shares during the last year, they didn't sell. They paid about US$31.07 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Southern First Bancshares is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Southern First Bancshares Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Southern First Bancshares insiders own about US$16m worth of shares. That equates to 6.6% 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 Southern First Bancshares Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Southern First Bancshares shares, given these transactions (along with notable insider ownership of the company). 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. At Simply Wall St, we've found that Southern First Bancshares has 2 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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