RBB Bancorp (NASDAQ: RBB) insiders sold US $ 735,000 in shares, possibly signaling a downtrend
Not bad RBB Bancorp (NASDAQ: RBB) Insiders have sold their shares in the past year, which may be of concern. When analyzing insider transactions, it is usually more useful to know if insiders are buying rather than knowing if they are selling, because the latter sends an ambiguous message. However, when multiple insiders sell shares over a specific length of time, shareholders should take this into account as this could potentially be a red flag.
While we never suggest that investors base their decisions solely on what a company’s directors have done, logic dictates that you pay attention to whether insiders are buying or selling stocks.
The last 12 months of insider trading at RBB Bancorp
Executive Vice President and Chief Risk Officer I-Ming Liu achieved the biggest insider selling in the past 12 months. This single transaction involved US $ 450,000 of shares priced at US $ 25.75 each. So we know that an insider sold shares around the current price of US $ 25.21. We generally don’t like to see insider sales, but the lower the selling price, the more it concerns us. In this case, the big sale took place around the current price, so it’s not too bad (but it’s still not positive).
In the past year, insiders of RBB Bancorp have not purchased any shares in the company. The chart below shows insider trading (by companies and individuals) over the past year. If you want to know exactly who sold, for how much and when, just click on the graph below!
NasdaqGS: RBB Insider Trading Volume October 1, 2021
I will like RBB Bancorp better if I see big insider buys. In the meantime, watch this free list of growing companies with significant and recent insider buying.
RBB Bancorp insiders sell shares
Over the past three months there have been significant insider sales at RBB Bancorp. This may suggest that some insiders think stocks aren’t cheap.
Does RBB Bancorp pride itself on strong insider ownership?
Many investors like to check how well a company is owned by insiders. I think it’s a good sign if the insiders own a significant number of shares in the company. RBB Bancorp insiders own around $ 137 million in shares (or 28% of the company). Most shareholders would be happy to see this type of insider ownership, as it suggests that management’s incentives are well aligned with those of other shareholders.
What could insider trading at RBB Bancorp tell us?
Insiders recently sold stocks, but they haven’t bought. Looking at the past twelve months, our data shows no insider buying. On the positive side, RBB Bancorp is making money and increasing its profits. The company prides itself on having a high insider participation, but we’re a little hesitant, given the history of share sales. While we love to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. Every business has risks, and we have spotted 2 warning signs for RBB Bancorp you should know.
But beware : RBB Bancorp may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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