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Bullish insiders at Third Coast Bancshares, Inc. (NASDAQ:TCBX) loaded up on US$1.1m of stock earlier this year

·3 min read

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Third Coast Bancshares, Inc.'s (NASDAQ:TCBX) 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.

Check out our latest analysis for Third Coast Bancshares

Third Coast Bancshares Insider Transactions Over The Last Year

The Chief Financial Officer R. McWhorter made the biggest insider purchase in the last 12 months. That single transaction was for US$375k worth of shares at a price of US$25.00 each. That means that an insider was happy to buy shares at above the current price of US$20.09. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Third Coast Bancshares insiders may have bought shares in the last year, but they didn't sell any. 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!

insider-trading-volume
insider-trading-volume

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Third Coast Bancshares

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Third Coast Bancshares insiders own about US$26m worth of shares. That equates to 9.5% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Third Coast Bancshares Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Third Coast Bancshares shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Third Coast Bancshares insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Third Coast Bancshares and understanding it should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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