Have Insiders Sold Southern First Bancshares Shares Recently?

We'd be surprised if Southern First Bancshares, Inc. (NASDAQ:SFST) shareholders haven't noticed that the Independent Director, Leighton Cubbage, recently sold US$118k worth of stock at US$31.63 per share. On the bright side, that sale was only 6.2% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Southern First Bancshares

Southern First Bancshares Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the CEO & Director, R. Seaver, for US$164k worth of shares, at about US$31.31 per share. That means that even when the share price was below the current price of US$33.50, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. This single sale was just 5.9% of R. Seaver's stake.

In the last twelve months insiders purchased 1.29k shares for US$37k. But insiders sold 20.71k shares worth US$628k. Over the last year we saw more insider selling of Southern First Bancshares shares, than buying. The sellers received a price of around US$30.30, on average. We don't gain confidence from insider selling below the recent share price. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Southern First Bancshares Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 6.1% of Southern First Bancshares shares, worth about US$17m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Southern First Bancshares Tell Us?

An insider hasn't bought Southern First Bancshares stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Southern First Bancshares. In terms of investment risks, we've identified 1 warning sign with Southern First Bancshares and understanding it should be part of your investment process.

But note: Southern First Bancshares 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 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.