Insider Buying

SmartFinancial Insider Buys $290k Worth of Stock

SmartFinancial Inc
(SMBK:US)
12 months:
+14.38%
Activity:
Bullish
Pattern:
Purchases from board member
News:
Q3 results
SmartFinancial Inc
(SMBK:US)
12 months:
+14.38%
Activity:
Bullish
Pattern:
Purchases from board member
News:
Q3 results

If a corporate insider is buying company stock, it’s often worth taking a closer look. Insiders are some of the most informed participants in the market and their trades can provide valuable investment insights.

In this report, we are going to highlight some interesting insider buying at SmartFinancial Inc (SMBK:US). SmartFinancial is a Tennessee-based bank holding company that offers personal and business banking services through its subsidiary, SmartBank. It is listed on the Nasdaq and currently has a market cap of approximately $504.45 million.

Insider Buying at SmartFinancial

2iQ’s data shows that between October 28 and November 7, board member Cathy Ackerman purchased 10,000 SMBK shares at an average price of $28.95 per share. The trading activity cost the insider approximately $290,000 and increased her holding to 12,410 shares.

chart-smbk-us-2022-12-05-11-37-38

High-conviction Purchase

Ms. Ackerman is an experienced businesswoman. Currently, she is President and CEO of Ackermann Marketing & PR, a full-service marketing communications firm that is ranked among the Top 100 public relations firms in the US. She has been at the helm of Ackermann PR for over 40 years after founding the company in 1982.

What stands out here is the size of Ms. Ackermann’s purchase. The fact that she has invested nearly $300,000 in company stock and increased her holding from 2,410 shares to 12,410 shares suggests that she is confident the stock is set to move higher.

Benefiting From Higher Rates

SmartFinancial has momentum right now.

For the third quarter of 2022, the company reported operating earnings of $11.6 million, up 13% on the previous quarter and up 17% year on year. Net interest income was $36.7 million, up from $33.1 million in the previous quarter.

In terms of loans, the company reported net organic loan and lease growth of over $109 million, representing a 15% annualized quarter-over-quarter increase. Management noted that credit quality remains ‘solid’ with a ratio of nonperforming assets to total assets of just 0.10%.

"I am extremely pleased with another outstanding quarter. We posted a record quarter for revenue and continue to see strong EPS growth. Our team has done a phenomenal job of building our core revenue foundation this year as we continue to gain operating leverage,” said President and CEO Billy Carroll.

In light of this momentum, we see the insider buying here as a bullish indicator.

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