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Even if it's not a huge purchase, we think it was good to see that Lynn Dickerson, the Independent Director of Oak Valley Bancorp (NASDAQ:OVLY) recently shelled out US$52k to buy stock, at US$17.17 per share. Even though that isn't a massive buy, it did increase their holding by 56%, which is arguably a good sign.
Oak Valley Bancorp Insider Transactions Over The Last Year
The Independent Director H. Holder made the biggest insider purchase in the last 12 months. That single transaction was for US$155k worth of shares at a price of US$15.47 each. Even though the purchase was made at a significantly lower price than the recent price (US$17.52), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid US$520k for 34.00k shares. On the other hand they divested 4.60k shares, for US$76k. In the last twelve months there was more buying than selling by Oak Valley Bancorp insiders. The chart below shows insider transactions (by companies and 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!
Oak Valley Bancorp is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 19% of Oak Valley Bancorp shares, worth about US$27m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Oak Valley Bancorp Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Oak Valley Bancorp insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Oak Valley Bancorp has 1 warning sign we think you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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.
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