Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Third Coast Bancshares, Inc. (NASDAQ:TCBX), that sends out a positive message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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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. Even though the purchase was made at a significantly lower price than the recent price (US$32.63), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months insiders purchased 14.28k shares for US$357k. But insiders sold 2.00k shares worth US$75k. In the last twelve months there was more buying than selling by Third Coast Bancshares insiders. The average buy price was around US$24.96. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Third Coast Bancshares

Third Coast Bancshares is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Third Coast Bancshares Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Third Coast Bancshares. They bought US$95k worth in that time. However, Independent Director W. Brunson netted US$75k for sales. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 7.7% of Third Coast Bancshares shares, worth about US$35m. 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 Third Coast Bancshares Insider Transactions Indicate?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Third Coast Bancshares insiders are doubting the company, and they do own shares. Of course, the future is what matters most. So if you are interested in Third Coast Bancshares, you should check out this free report on analyst forecasts for the company .

Of course Third Coast Bancshares 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 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.