Possible Bearish Signals With Southern First Bancshares Insiders Disposing Stock

Southern First Bancshares, Inc. (NASDAQ:SFST) shareholders may have reason to be concerned, as several insiders sold their shares over the past year. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out 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 an insider was selling shares at slightly below the current price (US$33.64). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 5.9% of R. Seaver's holding.

Over the last year, we can see that insiders have bought 250.00 shares worth US$9.7k. On the other hand they divested 26.73k shares, for US$842k. All up, insiders sold more shares in Southern First Bancshares than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Southern First Bancshares Insiders Are Selling The Stock

We have seen a bit of insider selling at Southern First Bancshares, over the last three months. insider Julie Fairchild sold US$45k worth of shares in that time. But the good news is that there was purchasing too , worth US$6.8k. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 6.0% of Southern First Bancshares shares, worth about US$18m. 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?

Insider selling has just outweighed insider buying in the last three months. But the difference isn't enough to have us worried. Recent insider selling makes us a little nervous, in light of the broader picture of Southern First Bancshares insider transactions. But we do like the fact that insiders own a fair chunk of the company. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Southern First Bancshares.

Of course Southern First Bancshares may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.