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Investors who take an interest in Atlantic Capital Bancshares, Inc. (NASDAQ:ACBI) should definitely note that the Independent Director, Thomas Holder, recently paid US$20.59 per share to buy US$206k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 36%.
The Last 12 Months Of Insider Transactions At Atlantic Capital Bancshares
Notably, that recent purchase by Thomas Holder is the biggest insider purchase of Atlantic Capital Bancshares shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$20.35. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay 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.
Atlantic Capital Bancshares insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$14.31. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Atlantic Capital Bancshares is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Atlantic Capital Bancshares
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Atlantic Capital Bancshares insiders own 4.3% of the company, worth about US$18m. 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 Do The Atlantic Capital Bancshares Insider Transactions Indicate?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Atlantic Capital Bancshares we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 1 warning sign for Atlantic Capital Bancshares and we suggest you have a look.
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.
This article by Simply Wall St is general in nature. 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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