Pleasing Signs As A Number Of Insiders Buy United Security Bancshares Stock \
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of United Security Bancshares (NASDAQ:UBFO), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for United Security Bancshares
United Security Bancshares Insider Transactions Over The Last Year
In fact, the recent sale by William Yarbenet was the biggest sale of United Security Bancshares shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$6.79, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 24% of William Yarbenet's holding.
In the last twelve months insiders purchased 19.00k shares for US$135k. But they sold 12.32k shares for US$82k. In the last twelve months there was more buying than selling by United Security Bancshares insiders. The chart below shows insider transactions (by companies and individuals) 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!
United Security Bancshares is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
United Security Bancshares Insiders Are Selling The Stock
The last three months saw some United Security Bancshares insider selling. Senior VP & Chief Credit Officer William Yarbenet sold US$66k worth of shares in that time. But the good news is that there was purchasing too , worth US$38k. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.
Does United Security Bancshares Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that United Security Bancshares insiders own 13% of the company, worth about US$15m. 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 United Security Bancshares Insider Transactions Indicate?
Insider selling has just outweighed insider buying in the last three months. But the net divestment is not enough to concern us at all. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in United Security Bancshares and their transactions don't cause us concern. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 1 warning sign for United Security Bancshares and we suggest you have a look.
Of course United Security Bancshares may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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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