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.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Southside Bancshares

The Last 12 Months Of Insider Transactions At Southside Bancshares

The Independent Director Herbert Buie made the biggest insider purchase in the last 12 months. That single transaction was for US$141k worth of shares at a price of US$28.25 each. So it's clear an insider wanted to buy, at around the current price, which is US$29.66. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months insiders purchased 13.34k shares for US$392k. But insiders sold 3.56k shares worth US$114k. In the last twelve months there was more buying than selling by Southside Bancshares insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Southside Bancshares is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Southside Bancshares Insiders Bought Stock Recently

There was some insider buying at Southside Bancshares over the last quarter. In that period Independent Director John Sammons spent US$96k on shares. On the other hand, insider Jared Green sold US$50k worth of shares. It is nice to see that insiders have bought, but the quantum isn't large enough to get us excited.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Southside Bancshares insiders own 5.5% 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.

What Might The Insider Transactions At Southside Bancshares Tell Us?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. Insiders own shares in Southside Bancshares and we see no evidence to suggest they are worried about the future. 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. At Simply Wall St, we found 1 warning sign for Southside Bancshares that deserve your attention before buying any shares.

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.