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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Affinity Bancshares, Inc.'s (NASDAQ:AFBI) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Affinity Bancshares Insider Transactions Over The Last Year
The insider Kenneth Lehman made the biggest insider purchase in the last 12 months. That single transaction was for US$213k worth of shares at a price of US$12.96 each. We do like to see buying, but this purchase was made at well below the current price of US$14.50. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months Affinity Bancshares insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Affinity Bancshares is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Affinity Bancshares Insiders Bought Stock Recently
Over the last quarter, Affinity Bancshares insiders have spent a meaningful amount on shares. Overall, two insiders shelled out US$376k for shares in the company -- and none sold. That shows some optimism about the company's future.
Does Affinity Bancshares Boast High 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. Affinity Bancshares insiders own about US$18m worth of shares. That equates to 18% of the company. 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 Do The Affinity Bancshares Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Affinity Bancshares.
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, but not derivative transactions.
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.
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