Potential Ameris Bancorp (NASDAQ:ABCB) shareholders may wish to note that the CEO & Director, H. Proctor, recently bought US$117k worth of stock, paying US$46.71 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.
Ameris Bancorp Insider Transactions Over The Last Year
The Independent Director, Robert Ezzell, made the biggest insider sale in the last 12 months. That single transaction was for US$570k worth of shares at a price of US$56.97 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$49.13. So it may not tell us anything about how insiders feel about the current share price.
In the last twelve months insiders purchased 4.00k shares for US$152k. But insiders sold 16.00k shares worth US$832k. Over the last year we saw more insider selling of Ameris Bancorp shares, than buying. The average sell price was around US$52.01. It's not particularly great to see insiders were selling shares at below recent prices. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. 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!NasdaqGS:ABCB Insider Trading Volume July 30th 2021
I will like Ameris Bancorp better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Ameris Bancorp insiders own 5.5% of the company, currently worth about US$188m 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.
So What Do The Ameris Bancorp Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at Ameris Bancorp, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Ameris Bancorp makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ameris Bancorp. For instance, we've identified 2 warning signs for Ameris Bancorp (1 doesn't sit too well with us) you should be aware of.
Of course Ameris Bancorp may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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