Insider Sells Parke Bancorp's Stock
A Form 4 filing filed with the SEC on Friday, October 30 showed that Kripitz Jeffrey H sold 15,000 shares of Parke Bancorp Inc (NASDAQ:PKBK) at an average price of $12.41. The transaction moved the executive's stake in Parke Bancorp Inc. to 153,513 shares. Shares of Parke Bancorp rose by 2.7% from the previous closing price.
The Importance of Insider Transactions
While transactions from an insider shouldn't be used as the sole item to make an investment or trading decision, an insider buying or selling stock in their company can be a good added factor that leads to more conviction in a decision.
Insiders buying stock after a notable sell off can indicate an insider's long-term belief in the success of the company; insiders buying stock at new highs can be an indication the exec doesn't feel the stock is overvalued. Insiders who sell stock at new lows could be anticipating some capitulation moment. If the insider sells at new highs, it could point to the intention to "take some profit" and "lock in a gain."
Transaction Codes To Focus On
Wall Street tends to focus on insider transactions which take place in the open market, viewed inside a Form 4 filing via codes P for purchase and S for sale. If the transaction was an open-market transaction, that means that the insider made a concious decision for the company's stock moving forward.
Transaction codes besides P or S aren't relatively important as they are seldom tied to a decision by the executive. For example, transaction code A is indicative of an insider being forced to sell shares to attain compensation. Moreover, transaction code C indicates the conversion of an option.
See more from Benzinga
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
