Sang Lee Is The Independent Chairman of the Board of PCB Bancorp (NASDAQ:PCB) And Just Spent US$228k On Shares
Investors who take an interest in PCB Bancorp (NASDAQ:PCB) should definitely note that the Independent Chairman of the Board, Sang Lee, recently paid US$18.75 per share to buy US$228k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.
Check out our latest analysis for PCB Bancorp
PCB Bancorp Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Chairman of the Board Sang Lee was not the only time they bought PCB Bancorp shares this year. They previously made an even bigger purchase of US$433k worth of shares at a price of US$23.95 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$18.56). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid US$2.7m for 129.05k shares. But insiders sold 13.52k shares worth US$307k. In total, PCB Bancorp insiders bought more than they sold over the last year. Their average price was about US$21.11. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and 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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. PCB Bancorp insiders own about US$51m worth of shares. That equates to 19% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At PCB Bancorp Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest PCB Bancorp insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PCB Bancorp. While conducting our analysis, we found that PCB Bancorp has 1 warning sign and it would be unwise to ignore it.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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