This Insider Has Just Sold Shares In Third Coast Bancshares

We note that the Third Coast Bancshares, Inc. (NASDAQ:TCBX) Independent Director, W. Brunson, recently sold US$75k worth of stock for US$37.54 per share. However we note that the sale only shrunk their holding by 3.8%.

View our latest analysis for Third Coast Bancshares

Third Coast Bancshares Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive VP & Chief Banking Officer William Bobbora for US$95k worth of shares, at about US$21.44 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$35.51. 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 insiders purchased 12.28k shares for US$292k. On the other hand they divested 2.00k shares, for US$75k. In total, Third Coast Bancshares insiders bought more than they sold over the last year. The average buy price was around US$23.76. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Third Coast Bancshares insiders own about US$37m worth of shares. That equates to 7.6% 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?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Insiders own shares in Third Coast Bancshares and we see no evidence to suggest they are worried about the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 1 warning sign for Third Coast Bancshares you should know about.

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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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.