SmartFinancial Inc . (NASDAQ:NYSE:SMBK) executive Rhett D. Jordan, the company's EVP and Chief Credit Officer, recently sold 350 shares of common stock at a price of $22.25 per share, according to a new SEC filing. The transaction, dated May 7, 2024, resulted in a total sale value of approximately $7,787.
The sale by Jordan, who holds a key leadership role within the financial institution, follows the typical transactions that executives make in the course of their tenure with a company. Following the sale, Jordan's remaining ownership in SmartFinancial stands at 11,428 shares of common stock.
Investors often monitor insider transactions as they can provide insights into an executive's confidence in the company's prospects. However, such sales can also be part of regular financial planning or diversification strategies by individuals within the company's leadership.
SmartFinancial, based in Knoxville, Tennessee, operates as a national commercial bank and has been a part of the financial sector under various names, with its current incarnation established through the mergers of Cornerstone Bancshares Inc. and East Ridge Bancshares Inc.
The recent transaction was officially signed off by Glen Allen, Jr., acting as Attorney-in-Fact. It's important for investors to note that insider transactions are common and are disclosed in compliance with SEC regulations, offering transparency into the actions of company executives and major shareholders.
InvestingPro Insights
As SmartFinancial Inc. (NASDAQ:SMBK) navigates the financial sector landscape, recent insider transactions, such as the sale by EVP and Chief Credit Officer Rhett D. Jordan, may catch the eye of savvy investors. To add context to these transactions, InvestingPro data and tips offer a deeper dive into the company's performance and outlook.
With a market capitalization of $379.51 million and a price-to-earnings (P/E) ratio standing at 14.17, SmartFinancial presents a valuation that seems to be in line with the industry standards. The company's consistent dividend increases over the past five years, as noted by one of the InvestingPro Tips, suggest a commitment to returning value to shareholders, which is a positive sign for investors looking for income-generating stocks.
Another InvestingPro Tip indicates that analysts predict SmartFinancial will be profitable this year, aligning with the company's recent performance that shows a profitable last twelve months. This is reinforced by the company's operating income margin of 28.47% for the same period, demonstrating its ability to translate revenues into profits effectively.
However, not all indicators are positive. The company's revenue growth has seen a decline of -11.82% over the last twelve months as of Q1 2024, which may raise concerns about future earnings potential, especially in light of the six analysts' downward revisions for the upcoming period mentioned in another InvestingPro Tip. Additionally, the weak gross profit margins, as highlighted by the tips, could suggest some challenges in maintaining profitability in an increasingly competitive environment.
Investors interested in a comprehensive analysis of SmartFinancial, including additional tips that can further inform investment decisions, can explore the company's profile on InvestingPro. For those looking to enhance their investing toolkit, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Currently, there are more tips available on InvestingPro that could provide valuable insights into SmartFinancial's market position and future prospects.
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