 MetroCity Bankshares Inc NASDAQ:MCBS was trading 11 higher from the previous closing price. A Form 4 filing filed with the SEC on Thursday, June 11 showed that Patel Ajit A. sold 5,000 shares at an average price of 14.02. The transaction moved the executives stake in MetroCity Bankshares Inc. to 533,762 shares.Why Insider Transactions Are Important? While transactions from an insider shouldnt be used as the sole item to make an investment or trading decision, an insider buying or selling stock in their company can be a good added factor that leads to more conviction in a decision. Insiders buying stock after a notable sell off can indicate an insiders long-term belief in the success of the company; insiders buying stock at new highs can be an indication the exec doesnt feel the stock is overvalued. Conversely, insiders who are selling stock at new lows can potentially indicate some kind of capitulation moment. Insiders selling at new highs can indicate that exec wants to take some profit and lock in a gain.Transaction Codes To Focus On Investors prefer focusing on transactions which take place in the open market, indicated in the Form 4 with codes P for purchase and S for sale. An open-market transaction means the insider went into the market of their own volition and made an active decision about the potential path for a company and its stock moving forward. Transaction codes besides P or S arent relatively important as they are seldom tied to a decision by the executive. For example, transaction code A is indicative of an insider being forced to sell shares to attaincompensation. Moreover, transaction code C indicates the conversion of an option.See more from Benzinga Stocks That Hit 52-Week Lows On Thursday Stocks That Hit 52-Week Lows On Wednesday Stocks That Hit 52-Week Lows On ThursdayC 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. 