Don't Ignore The Insider Selling In Affinity Bancshares

We'd be surprised if Affinity Bancshares, Inc. (NASDAQ:AFBI) shareholders haven't noticed that the Independent Director, Howard Roberts, recently sold US$153k worth of stock at US$21.50 per share. That sale was 20% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Affinity Bancshares

Affinity Bancshares Insider Transactions Over The Last Year

Notably, that recent sale by Howard Roberts is the biggest insider sale of Affinity Bancshares shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$21.46. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Howard Roberts ditched 7.93k shares over the year. The average price per share was US$21.50. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Affinity Bancshares

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Affinity Bancshares insiders own 20% of the company, worth about US$28m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Affinity Bancshares Tell Us?

An insider hasn't bought Affinity Bancshares stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. 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.

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 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.