Some South Plains Financial, Inc. (NASDAQ:SPFI) shareholders may be a little concerned to see that the Director, James Stein, recently sold a substantial US$602k worth of stock at a price of US$40.27 per share. However, that sale only accounted for 4.0% of their holding, so arguably it doesn't say much about their conviction.

The Last 12 Months Of Insider Transactions At South Plains Financial

In fact, the recent sale by James Stein was the biggest sale of South Plains Financial shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$39.11. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership Of South Plains Financial

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 12% of South Plains Financial shares, worth about US$91m. 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 South Plains Financial Insiders?

An insider sold South Plains Financial shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that South Plains Financial is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing South Plains Financial. In terms of investment risks, we've identified 2 warning signs with South Plains Financial and understanding them should be part of your investment process.

But note: South Plains Financial 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.

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.