Yahoo Finance Bullish Southern Missouri Bancorp, Inc. (NASDAQ:SMBC) insiders filled their treasuries with US$620k worth of stock over last year
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Southern Missouri Bancorp, Inc. (NASDAQ:SMBC), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Southern Missouri Bancorp
The Last 12 Months Of Insider Transactions At Southern Missouri Bancorp
In the last twelve months, the biggest single purchase by an insider was when Market Chairman & Director Daniel Jones bought US$198k worth of shares at a price of US$39.51 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$36.41). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders paid US$620k for 15.00k shares. But they sold 900.00 shares for US$41k. Overall, Southern Missouri Bancorp insiders were net buyers during 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Southern Missouri Bancorp Insiders Bought Stock Recently
There has been significantly more insider buying, than selling, at Southern Missouri Bancorp, over the last three months. Insiders spent US$345k on shares. On the other hand, insider Brett Dorton netted US$19k by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Does Southern Missouri Bancorp Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Southern Missouri Bancorp insiders own about US$72m worth of shares. That equates to 17% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Southern Missouri Bancorp Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Southern Missouri Bancorp insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Southern Missouri Bancorp and understanding this should be part of your investment process.
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, but not derivative transactions.
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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.
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