Yahoo Finance Pleasing Signs As A Number Of Insiders Buy Southside Bancshares Stock
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 Southside Bancshares, Inc. (NASDAQ:SBSI), 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 would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Southside Bancshares
The Last 12 Months Of Insider Transactions At Southside Bancshares
Over the last year, we can see that the biggest insider purchase was by Independent Director Herbert Buie for US$141k worth of shares, at about US$28.25 per share. That means that an insider was happy to buy shares at around the current price of US$29.04. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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. Happily, the Southside Bancshares insiders decided to buy shares at close to current prices.
Over the last year, we can see that insiders have bought 12.95k shares worth US$368k. But insiders sold 5.81k shares worth US$179k. In total, Southside Bancshares insiders bought more than they sold over the last year. 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!
Southside Bancshares is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Southside Bancshares Insiders Bought Stock Recently
Over the last quarter, Southside Bancshares insiders have spent a meaningful amount on shares. Independent Director Herbert Buie spent US$65k on stock, and there wasn't any selling. This makes one think the business has some good points.
Insider Ownership Of Southside Bancshares
For a common shareholder, it is worth checking how many shares are held by company 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. It appears that Southside Bancshares insiders own 5.6% of the company, worth about US$49m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Southside Bancshares Insider Transactions Indicate?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Southside Bancshares we think they are probably pretty confident of a bright future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Southside Bancshares 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 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.
