This Insider Has Just Sold Shares In MetroCity Bankshares, Inc. (NASDAQ:MCBS)

Anyone interested in MetroCity Bankshares, Inc. (NASDAQ:MCBS) should probably be aware that the Chairman & CEO, Nack Paek, recently divested US$291k worth of shares in the company, at an average price of US$14.56 each. However, the silver lining is that the sale only reduced their total holding by 1.5%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for MetroCity Bankshares

MetroCity Bankshares Insider Transactions Over The Last Year

In fact, the recent sale by Nack Paek was the biggest sale of MetroCity Bankshares shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$14.50. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Insiders in MetroCity Bankshares didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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: insiders have been buying them).

Does MetroCity Bankshares 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. I reckon it's a good sign if insiders own a significant number of shares in the company. MetroCity Bankshares insiders own 34% of the company, currently worth about US$128m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At MetroCity Bankshares Tell Us?

Insiders sold MetroCity Bankshares shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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 2 warning signs that you should run your eye over to get a better picture of MetroCity Bankshares.

But note: MetroCity Bankshares may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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