This Insider Has Just Sold Shares In South Plains Financial

We wouldn't blame South Plains Financial, Inc. (NASDAQ:SPFI) shareholders if they were a little worried about the fact that Curtis Griffith, the Chairman & CEO recently netted about US$1.4m selling shares at an average price of US$35.54. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.2%.

Check out our latest analysis for South Plains Financial

South Plains Financial Insider Transactions Over The Last Year

Notably, that recent sale by Chairman & CEO Curtis Griffith was not the only time they sold South Plains Financial shares this year. They previously made an even bigger sale of -US$2.5m worth of shares at a price of US$24.75 per share. That means that an insider was selling shares at slightly below the current price (US$35.50). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 4.8% of Curtis Griffith's stake.

Curtis Griffith divested 436.39k shares over the last 12 months at an average price of US$28.19. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does South Plains Financial 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. Insiders own 17% of South Plains Financial shares, worth about US$97m. 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 Does This Data Suggest About South Plains Financial Insiders?

An insider hasn't bought South Plains Financial stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for South Plains Financial.

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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.