Third Coast Bancshares Reaches US$369m Market Cap Benefiting Insider Stock Buying

Last week, Third Coast Bancshares, Inc. (NASDAQ:TCBX) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 11% last week, resulting in a US$37m increase in the company's market worth, implying a 41% gain on their initial purchase. In other words, the original US$267.5k purchase is now worth US$377.4k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Third Coast Bancshares

Third Coast Bancshares Insider Transactions Over The Last Year

The Executive VP & Chief Banking Officer William Bobbora made the biggest insider purchase in the last 12 months. That single transaction was for US$95k worth of shares at a price of US$21.44 each. We do like to see buying, but this purchase was made at well below the current price of US$27.99. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months Third Coast Bancshares insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Third Coast Bancshares is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Third Coast Bancshares Insiders Bought Stock Recently

It's good to see that Third Coast Bancshares insiders have made notable investments in the company's shares. Executive VP & Chief Banking Officer William Bobbora spent US$53k on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.

Does Third Coast Bancshares Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Third Coast Bancshares insiders own about US$26m worth of shares. That equates to 7.2% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Third Coast Bancshares Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Third Coast Bancshares we think they are probably pretty confident of a bright future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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 of direct interests only, but not derivative transactions or indirect interests.

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