Affinity Bancshares Insiders Benefit From Selling Stock At US$18.75

While it’s been a great week for Affinity Bancshares, Inc. (NASDAQ:AFBI) shareholders after stock gained 12%, company insiders might have missed out on those gains after selling stock earlier this year. They could have sold their shares at much higher prices and gotten a better return on their investment if they had waited.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Affinity Bancshares Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Executive VP & Chief Credit Officer, Clark Nelson, for US$181k worth of shares, at about US$18.21 per share. That means that an insider was selling shares at slightly below the current price (US$22.50). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 34% of Clark Nelson's stake.

All up, insiders sold more shares in Affinity Bancshares than they bought, over 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!

Check out our latest analysis for Affinity Bancshares

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

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. Affinity Bancshares insiders own about US$27m worth of shares. That equates to 21% 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 Does This Data Suggest About Affinity Bancshares Insiders?

The fact that there have been no Affinity Bancshares insider transactions recently certainly doesn't bother us. Our analysis of Affinity Bancshares insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. Along with insider transactions, I recommend checking if Affinity Bancshares is growing revenue. This free chart of historic revenue and earnings should make that easy.

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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.