We'd be surprised if Southern First Bancshares, Inc. (NASDAQ:SFST) shareholders haven't noticed that the CEO & Director, R. Seaver, recently sold US$147k worth of stock at US$31.07 per share. On the bright side, that sale was only 5.0% of their holding, so we doubt it's very meaningful, on its own.
Southern First Bancshares Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Executive VP & CFO David Borrmann for US$193k worth of shares, at about US$27.75 per share. So it's clear an insider wanted to buy, at around the current price, which is US$30.37. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
Over the last year, we can see that insiders have bought 22.86k shares worth US$587k. But they sold 4.72k shares for US$147k. In the last twelve months there was more buying than selling by Southern First Bancshares insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insider Ownership Of Southern First Bancshares
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 6.9% of Southern First Bancshares shares, worth about US$17m. 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 First Bancshares Insiders?
Unfortunately, there has been more insider selling of Southern First Bancshares stock, than buying, in the last three months. But we take heart from prior transactions. We like that insiders own a fair amount of the company. So we're not overly bothered by recent selling. While we like knowing 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 - Southern First Bancshares has 2 warning signs we think you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.