Anyone interested in Affinity Bancshares, Inc. (NASDAQ:AFBI) should probably be aware that the Senior VP & Operations Officer, Robert Vickers, recently divested US$147k worth of shares in the company, at an average price of US$19.47 each. Equally important, that sale actually reduced their holding by a full 58% which hardly makes us feel bullish about the stock.

The Last 12 Months Of Insider Transactions At Affinity Bancshares

Over the last year, we can see that the biggest insider sale was by the Executive VP & Chief Credit Officer, Clark Nelson, for US$181k worth of shares, at about US$18.21 per share. That means that an insider was selling shares at slightly below the current price (US$19.83). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 34% of Clark Nelson's holding.

All up, insiders sold more shares in Affinity Bancshares than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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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. It appears that Affinity Bancshares insiders own 20% of the company, worth about US$26m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Affinity Bancshares Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Affinity Bancshares stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Affinity Bancshares makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! 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.

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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.

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.