Independent Director Of SmartFinancial Sold 66% Of Their Shares

Some SmartFinancial, Inc. (NYSE:SMBK) shareholders may be a little concerned to see that the Independent Director, John Presley, recently sold a substantial US$740k worth of stock at a price of US$35.80 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 66% of their entire holding.

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SmartFinancial Insider Transactions Over The Last Year

Notably, that recent sale by John Presley is the biggest insider sale of SmartFinancial shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$34.82. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In total, SmartFinancial insiders sold more than they bought over the last year. 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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Insider Ownership Of SmartFinancial

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that SmartFinancial insiders own 16% of the company, worth about US$93m. 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 SmartFinancial Insiders?

Insiders haven't bought SmartFinancial 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. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 1 warning sign for SmartFinancial 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.