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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Affinity Bancshares, Inc. (NASDAQ:AFBI), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Affinity Bancshares Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Kenneth Lehman for US$213k worth of shares, at about US$12.96 per share. We do like to see buying, but this purchase was made at well below the current price of US$14.61. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
While Affinity Bancshares insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Affinity Bancshares is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Affinity Bancshares Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Affinity Bancshares. Overall, two insiders shelled out US$54k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Does Affinity Bancshares Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 19% of Affinity Bancshares shares, worth about US$19m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Affinity Bancshares Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Affinity Bancshares we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Affinity Bancshares. For example - Affinity Bancshares has 1 warning sign we think you should be aware of.
But note: Affinity Bancshares 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, but not derivative transactions.
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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.