Even if it's not a huge purchase, we think it was good to see that H. Holder, the Independent Director of Oak Valley Bancorp (NASDAQ:OVLY) recently shelled out US$68k to buy stock, at US$13.48 per share. However, it only increased their shares held by 5.1%, and it wasn't a huge purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At Oak Valley Bancorp
In the last twelve months, the biggest single purchase by an insider was when Independent Director Janet Pelton bought US$72k worth of shares at a price of US$14.45 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$13.30). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 22.11k shares for US$332k. On the other hand they divested 4.50k shares, for US$77k. In total, Oak Valley Bancorp insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Oak Valley Bancorp is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Oak Valley Bancorp
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Oak Valley Bancorp insiders own about US$20m worth of shares. That equates to 18% of the company. 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 Oak Valley Bancorp Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Oak Valley Bancorp we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Oak Valley Bancorp. 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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