Lead Independent Director of Smith Douglas Homes Picks Up 120% More Stock

Potential Smith Douglas Homes Corp. (NYSE:SDHC) shareholders may wish to note that the Lead Independent Director, Jeffrey Jackson, recently bought US$256k worth of stock, paying US$29.77 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 120%.

Check out our latest analysis for Smith Douglas Homes

The Last 12 Months Of Insider Transactions At Smith Douglas Homes

Notably, that recent purchase by Jeffrey Jackson is the biggest insider purchase of Smith Douglas Homes shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$33.59. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months Smith Douglas Homes insiders were buying shares, but not selling. The average buy price was around US$26.55. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Smith Douglas Homes is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Smith Douglas Homes

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. From what we can see in our data, insiders own only about US$158k worth of Smith Douglas Homes shares. We might be missing something but that seems like very low insider ownership.

What Might The Insider Transactions At Smith Douglas Homes Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Smith Douglas Homes insiders are expecting a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Smith Douglas Homes has 1 warning sign we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.