Director James Kao Acquires 32,000 Shares of RBB Bancorp
On February 1, 2024, James Kao, a director at RBB Bancorp (NASDAQ:RBB), executed a purchase of 32,000 shares of the company's stock, according to a recent SEC Filing. This transaction has contributed to the insider's total acquisition of 34,000 shares over the past year, with no recorded sales of the company's stock during the same period.
RBB Bancorp operates as the bank holding company for Royal Business Bank, which provides various banking products and services to the Chinese-American communities in Los Angeles County, Orange County, Ventura County, and in Las Vegas, Nevada. The bank's offerings include deposit products, loans, and international banking services, catering to individuals, businesses, and other organizations.
Insider buying and selling activities are closely monitored by investors as they can provide insights into a company's internal perspective. Insider buys may suggest that the insiders are confident in the company's future prospects, while insider sells could indicate the opposite. However, these transactions may also be influenced by personal financial needs or portfolio strategies of the insiders, and thus, should be evaluated within a broader context.
The insider transaction history for RBB Bancorp shows a pattern of insider confidence, with 6 insider buys and no insider sells over the past year.
On the valuation front, RBB Bancorp's shares were trading at $17.56 on the day of the insider's purchase, resulting in a market cap of $330.871 million. The price-earnings ratio of 7.92 is below both the industry median of 9.46 and the company's historical median, suggesting a lower valuation compared to its peers and its own past trading history.
The stock's price relative to the GuruFocus Value (GF Value) indicates that RBB Bancorp is currently modestly undervalued. With a share price of $17.56 and a GF Value of $22.90, the price-to-GF-Value ratio stands at 0.77.
The GF Value is a proprietary intrinsic value estimate from GuruFocus, which is calculated based on historical trading multiples, a GuruFocus adjustment factor, and future business performance estimates provided by Morningstar analysts.
Historical multiples include price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow.
The GuruFocus adjustment factor accounts for the company's past returns and growth.
Future business performance estimates are sourced from Morningstar analysts.
Investors may consider these factors and the recent insider buying activity when evaluating RBB Bancorp as a potential investment.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
