Have Equity Bancshares, Inc. (NASDAQ:EQBK) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
March 18, 2021
NasdaqGS:EQBK

We wouldn't blame Equity Bancshares, Inc. (NASDAQ:EQBK) shareholders if they were a little worried about the fact that Brad Elliott, the Founder recently netted about US$614k selling shares at an average price of US$28.55. However, that sale only accounted for 8.4% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for Equity Bancshares

Equity Bancshares Insider Transactions Over The Last Year

Notably, that recent sale by Brad Elliott is the biggest insider sale of Equity Bancshares shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$28.32. 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.

In the last twelve months insiders purchased 26.25k shares for US$422k. But insiders sold 22.04k shares worth US$627k. Over the last year we saw more insider selling of Equity Bancshares shares, than buying. 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!

insider-trading-volume
NasdaqGS:EQBK Insider Trading Volume March 18th 2021

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

Does Equity Bancshares Boast High Insider Ownership?

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. Equity Bancshares insiders own about US$26m worth of shares. That equates to 6.4% 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.

What Might The Insider Transactions At Equity Bancshares Tell Us?

Insiders sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. 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. At Simply Wall St, we found 2 warning signs for Equity Bancshares that deserve your attention before buying any shares.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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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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