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Independent Director James W. Kao Just Bought 1.2% More Shares In RBB Bancorp (NASDAQ:RBB)

Simply Wall St
·3 mins read

Whilst it may not be a huge deal, we thought it was good to see that the RBB Bancorp (NASDAQ:RBB) Independent Director, James W. Kao, recently bought US$64k worth of stock, for US$12.82 per share. Although the purchase is not a big one, increasing their shareholding by only 1.2%, it can be interpreted as a good sign.

View our latest analysis for RBB Bancorp

The Last 12 Months Of Insider Transactions At RBB Bancorp

The Secretary & Independent Director Peter M. Chang made the biggest insider purchase in the last 12 months. That single transaction was for US$2.3m worth of shares at a price of US$20.00 each. That means that even when the share price was higher than US$12.92 (the recent price), an insider wanted to purchase shares. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid US$4.9m for 290.09k shares. But they sold 23.80k shares for US$462k. In the last twelve months there was more buying than selling by RBB Bancorp insiders. The average buy price was around US$16.93. This is nice to see since it implies that insiders might see value around current prices. 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!

insider-trading-volume
insider-trading-volume

RBB 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 RBB Bancorp

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 38% of RBB Bancorp shares, worth about US$98m. 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?

It is good to see the recent insider purchase. And the longer term insider transactions also give 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing RBB Bancorp. For example - RBB Bancorp has 1 warning sign we think you should be aware of.

Of course RBB 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.

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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.