Lawrence Allbaugh Buys Handful Of Shares In Five Star Bancorp \
Potential Five Star Bancorp (NASDAQ:FSBC) shareholders may wish to note that the Independent Director, Lawrence Allbaugh, recently bought US$183k worth of stock, paying US$18.33 for each share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
Check out our latest analysis for Five Star Bancorp
Five Star Bancorp Insider Transactions Over The Last Year
Notably, that recent purchase by Lawrence Allbaugh is the biggest insider purchase of Five Star Bancorp shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$19.20. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Five Star Bancorp insiders decided to buy shares at close to current prices.
Happily, we note that in the last year insiders paid US$829k for 38.94k shares. On the other hand they divested 500.00 shares, for US$14k. In total, Five Star Bancorp insiders bought more than they sold over the last year. The average buy price was around US$21.29. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Five Star Bancorp is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Five Star Bancorp Boast High Insider Ownership?
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Five Star Bancorp insiders own 32% of the company, worth about US$105m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Five Star Bancorp Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Five Star Bancorp insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! 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. When we did our research, we found 2 warning signs for Five Star Bancorp (1 is a bit concerning!) that we believe deserve your full attention.
But note: Five Star 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.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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