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Independent Chairman of the Board Bruce Miller Just Bought 28% More Shares In Prudential Bancorp, Inc. (NASDAQ:PBIP)

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Simply Wall St
·3 min read
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Whilst it may not be a huge deal, we thought it was good to see that the Prudential Bancorp, Inc. (NASDAQ:PBIP) Independent Chairman of the Board, Bruce Miller, recently bought US$95k worth of stock, for US$11.15 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 28%.

Check out our latest analysis for Prudential Bancorp

Prudential Bancorp Insider Transactions Over The Last Year

Notably, that recent purchase by Bruce Miller is the biggest insider purchase of Prudential Bancorp shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$13.34. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.

Happily, we note that in the last year insiders paid US$356k for 24.12k shares. But they sold 6805 shares for US$126k. In total, Prudential Bancorp insiders bought more than they sold over the last year. Their average price was about US$14.75. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NasdaqGM:PBIP Recent Insider Trading April 30th 2020
NasdaqGM:PBIP Recent Insider Trading April 30th 2020

Prudential 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 of Prudential Bancorp

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 5.1% of Prudential Bancorp shares, worth about US$5.9m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Prudential Bancorp Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Prudential Bancorp insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Prudential Bancorp has 2 warning signs and it would be unwise to ignore them.

Of course Prudential Bancorp 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, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.