Whilst it may not be a huge deal, we thought it was good to see that the Southside Bancshares, Inc. (NASDAQ:SBSI) Independent Director, Melvin Lovelady, recently bought US$53k worth of stock, for US$26.47 per share. However, we do note that it only increased their holding by 9.6%, and it wasn’t a huge purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At Southside Bancshares
Notably, that recent purchase by Melvin Lovelady is the biggest insider purchase of Southside Bancshares 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$28.74. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. 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. The good news for Southside Bancshares share holders is that insiders were buying at near the current price.
While Southside Bancshares insiders bought shares last year, they didn’t sell. The average buy price was around US$29.95. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by individuals) over the last year depicted in the chart below. 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 Southside Bancshares Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Southside Bancshares insiders own about US$53m worth of shares. That equates to 5.4% 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 Do The Southside Bancshares Insider Transactions Indicate?
It’s certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Southside 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. In terms of investment risks, we’ve identified 2 warning signs with Southside Bancshares and understanding them should be part of your investment process.
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.
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.
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