Bullish Ameris Bancorp Insiders Loaded Up On US$1.23m Of Stock
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Ameris Bancorp's (NASDAQ:ABCB) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Ameris Bancorp
Ameris Bancorp Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Corporate Executive VP & Chief Credit Officer, Jon Edwards, for US$355k worth of shares, at about US$47.35 per share. So what is clear is that an insider saw fit to sell at around the current price of US$46.12. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). Jon Edwards was the only individual insider to sell over the last year.
Over the last year, we can see that insiders have bought 39.49k shares worth US$1.2m. On the other hand they divested 7.50k shares, for US$355k. Overall, Ameris Bancorp insiders were net buyers during the last year. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders At Ameris Bancorp Have Sold Stock Recently
The last three months saw significant insider selling at Ameris Bancorp. In total, Corporate Executive VP & Chief Credit Officer Jon Edwards sold US$355k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Insider Ownership Of Ameris Bancorp
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Ameris Bancorp insiders own 5.5% of the company, currently worth about US$176m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Ameris Bancorp Tell Us?
An insider sold Ameris Bancorp shares recently, but they didn't buy any. In contrast, they appear keener if you look at the last twelve months. On top of that, insiders own a significant portion of the company. So we're not too bothered by recent selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Ameris Bancorp has 1 warning sign and it would be unwise to ignore it.
But note: Ameris Bancorp 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 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.
