This Insider Has Just Sold Shares In SmartFinancial

Anyone interested in SmartFinancial, Inc. (NYSE:SMBK) should probably be aware that the Independent Director, John Presley, recently divested US$170k worth of shares in the company, at an average price of US$22.65 each. The eyebrow raising move amounted to a reduction of 16% in their holding.

See our latest analysis for SmartFinancial

SmartFinancial Insider Transactions Over The Last Year

In fact, the recent sale by Independent Director John Presley was not their only sale of SmartFinancial shares this year. They previously made an even bigger sale of -US$320k worth of shares at a price of US$21.34 per share. That means that an insider was selling shares at slightly below the current price (US$23.14). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 25%of John Presley's holding.

Over the last year, we can see that insiders have bought 1.35k shares worth US$30k. On the other hand they divested 24.78k shares, for US$541k. All up, insiders sold more shares in SmartFinancial than they bought, over the last year. 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!

I will like SmartFinancial better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does SmartFinancial 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that SmartFinancial insiders own 17% of the company, worth about US$67m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

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. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of SmartFinancial.

Of course SmartFinancial 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.

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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.