Have SmartFinancial Insiders Been Selling Stock?
Anyone interested in SmartFinancial, Inc. (NYSE:SMBK) should probably be aware that the Independent Director, Steven Tucker, recently divested US$404k worth of shares in the company, at an average price of US$38.01 each. That sale was 18% of their holding, so it does make us raise an eyebrow.
The Last 12 Months Of Insider Transactions At SmartFinancial
Notably, that recent sale by Steven Tucker is the biggest insider sale of SmartFinancial shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$39.29). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 18% of Steven Tucker's holding.
All up, insiders sold more shares in SmartFinancial than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for SmartFinancial
I will like SmartFinancial better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Does SmartFinancial Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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's great to see that SmartFinancial insiders own 15% of the company, worth about US$104m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The SmartFinancial Insider Transactions Indicate?
Insiders sold SmartFinancial shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that SmartFinancial is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SmartFinancial. Every company has risks, and we've spotted 1 warning sign for SmartFinancial you should know about.
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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