Peter Hui Is The Chairman of the Board of First Choice Bancorp (NASDAQ:FCBP) And They Just Spent US$192k On Shares
Investors who take an interest in First Choice Bancorp (NASDAQ:FCBP) should definitely note that the Chairman of the Board, Peter Hui, recently paid US$24.69 per share to buy US$192k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.0%.
View our latest analysis for First Choice Bancorp
First Choice Bancorp Insider Transactions Over The Last Year
Notably, that recent purchase by Peter Hui is the biggest insider purchase of First Choice Bancorp shares that we've seen in the last year. That implies that an insider found the current price of US$26.29 per share to be enticing. 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. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months insiders purchased 69.63k shares for US$1.5m. On the other hand they divested 11174 shares, for US$248k. In total, First Choice Bancorp insiders bought more than they sold over the last year. They paid about US$22.16 on average. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of First Choice Bancorp
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 appears that First Choice Bancorp insiders own 15% of the company, worth about US$46m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The First Choice Bancorp Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of First Choice 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 First Choice Bancorp, you should check out this free report on analyst forecasts for the company.
But note: First Choice 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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