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Have Insiders Been Buying Riverview Bancorp, Inc. (NASDAQ:RVSB) Shares?

Terrence Jolly

We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Riverview Bancorp, Inc. (NASDAQ:RVSB).

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.

See our latest analysis for Riverview Bancorp

Riverview Bancorp Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Director David Nierenberg for US$73k worth of shares, at about US$8.27 per share. That means that an insider was happy to buy shares at above the current price. 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. That purchase may suggest an expectation of positive returns over the long term.

Over the last year, we can see that insiders have bought 19.80k shares worth US$163k. In total, Riverview Bancorp insiders bought more than they sold over the last year. Their average price was about US$8.25. I’d consider this a positive as it suggests insiders see value at around the current price, which is US$7.05. The chart below shows insider transactions 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!

NasdaqGS:RVSB Insider Trading December 25th 18

Riverview 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.

Riverview Bancorp Insiders Bought Stock Recently

It’s good to see that Riverview Bancorp insiders have made notable investments in the company’s shares. In total, insiders bought US$163k worth of shares in that time, and we didn’t record any sales whatsoever. This makes one think the business has some good points.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It’s great to see that Riverview Bancorp insiders own 7.1% of the company, worth about US$12m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Riverview Bancorp Tell Us?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Riverview Bancorp we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in Riverview Bancorp, you should check out this free report on analyst forecasts for the company.

But note: Riverview Bancorp may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.