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A number of insiders bought Southern Missouri Bancorp, Inc. (NASDAQ:SMBC) stock last year, which is great news for shareholders

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 we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Southern Missouri Bancorp

The Last 12 Months Of Insider Transactions At Southern Missouri Bancorp

The Independent Director David Tooley made the biggest insider purchase in the last 12 months. That single transaction was for US$191k worth of shares at a price of US$42.38 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$51.00. 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.

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Over the last year, we can see that insiders have bought 6.50k shares worth US$275k. On the other hand they divested 2.29k shares, for US$127k. In total, Southern Missouri Bancorp insiders bought more than they sold over the last year. 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!

insider-trading-volume
insider-trading-volume

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).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Southern Missouri Bancorp insiders own 16% of the company, worth about US$75m. 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 Southern Missouri Bancorp Insiders?

The fact that there have been no Southern Missouri Bancorp insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Southern Missouri Bancorp and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Southern Missouri Bancorp. For example - Southern Missouri Bancorp has 1 warning sign we think you should be aware of.

But note: Southern Missouri Bancorp may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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