Don't Ignore The Insider Selling In Southern Missouri Bancorp

Anyone interested in Southern Missouri Bancorp, Inc. (NASDAQ:SMBC) should probably be aware that the Director, William Young, recently divested US$180k worth of shares in the company, at an average price of US$59.90 each. On the bright side, that sale was only 1.4% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Southern Missouri Bancorp

The Last 12 Months Of Insider Transactions At Southern Missouri Bancorp

Notably, that recent sale by Director William Young was not the only time they sold Southern Missouri Bancorp shares this year. Earlier in the year, they fetched US$49.42 per share in a -US$1.9m sale. So it's clear an insider wanted to take some cash off the table, even below the current price of US$58.68. 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 15% of William Young's holding.

In total, Southern Missouri Bancorp insiders sold more 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!

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Does Southern Missouri Bancorp Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Southern Missouri Bancorp insiders own 16% of the company, worth about US$109m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Southern Missouri Bancorp Insiders?

Insiders haven't bought Southern Missouri Bancorp stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Southern Missouri Bancorp makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Southern Missouri Bancorp. You'd be interested to know, that we found 1 warning sign for Southern Missouri Bancorp and we suggest you have a look.

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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.