Have Sierra Bancorp Insiders Been Selling Stock?

Some Sierra Bancorp (NASDAQ:BSRR) shareholders may be a little concerned to see that the Independent Chairman of the Board, Morris Tharp, recently sold a substantial US$797k worth of stock at a price of US$31.52 per share. However, that sale only accounted for 5.0% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for Sierra Bancorp

The Last 12 Months Of Insider Transactions At Sierra Bancorp

Notably, that recent sale by Independent Chairman of the Board Morris Tharp was not the only time they sold Sierra Bancorp shares this year. They previously made an even bigger sale of -US$992k worth of shares at a price of US$30.76 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$31.61. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 6.0% of Morris Tharp's holding.

Sierra Bancorp insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership Of Sierra Bancorp

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 11% of Sierra Bancorp shares, worth about US$48m. 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 Sierra Bancorp Tell Us?

An insider hasn't bought Sierra Bancorp stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But it is good to see that Sierra Bancorp is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 1 warning sign for Sierra Bancorp you should be aware of.

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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.