Yahoo Finance RBB Bancorp Insiders Placed Bullish Bets Worth US$1.73m
Multiple insiders secured a larger position in RBB Bancorp (NASDAQ:RBB) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for RBB Bancorp
RBB Bancorp Insider Transactions Over The Last Year
The Independent Chairman of the Board James W. Kao made the biggest insider purchase in the last 12 months. That single transaction was for US$562k worth of shares at a price of US$18.05 each. That means that an insider was happy to buy shares at above the current price of US$16.65. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
RBB Bancorp insiders may have bought shares in the last year, but they didn't sell any. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders At RBB Bancorp Have Bought Stock Recently
It's good to see that RBB Bancorp insiders have made notable investments in the company's shares. Specifically, Independent Chairman of the Board James W. Kao bought US$1.5m worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
Insider Ownership Of RBB Bancorp
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 26% of RBB Bancorp shares, worth about US$82m. 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 RBB Bancorp Insider Transactions Indicate?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest RBB Bancorp insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 2 warning signs we've spotted with RBB Bancorp (including 1 which is concerning).
But note: RBB Bancorp may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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