Heather Luck Is The Senior VP & CFO of Five Star Bancorp (NASDAQ:FSBC) And They Just Picked Up 38% More Shares
Potential Five Star Bancorp (NASDAQ:FSBC) shareholders may wish to note that the Senior VP & CFO, Heather Luck, recently bought US$102k worth of stock, paying US$20.31 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 38%.
Check out our latest analysis for Five Star Bancorp
Five Star Bancorp Insider Transactions Over The Last Year
The Independent Vice Chairperson of the Board Robert Perry-Smith made the biggest insider purchase in the last 12 months. That single transaction was for US$118k worth of shares at a price of US$25.76 each. That means that an insider was happy to buy shares at above the current price of US$21.26. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders paid US$744k for 31.50k shares. But insiders sold 500.00 shares worth US$14k. Overall, Five Star Bancorp insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Five Star Bancorp is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Five Star Bancorp insiders own about US$116m worth of shares (which is 32% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Five Star Bancorp Tell Us?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Five Star Bancorp insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Five Star Bancorp. In terms of investment risks, we've identified 1 warning sign with Five Star Bancorp and understanding it should be part of your investment process.
But note: Five Star 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, but not derivative transactions.
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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.
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