We'd be surprised if Parke Bancorp, Inc. (NASDAQ:PKBK) shareholders haven't noticed that the Independent Director, Jeffrey Kripitz, recently sold US$194k worth of stock at US$19.36 per share. On the bright side, that sale was only 3.5% of their holding, so we doubt it's very meaningful, on its own.
Parke Bancorp Insider Transactions Over The Last Year
Notably, that recent sale by Jeffrey Kripitz is the biggest insider sale of Parke Bancorp shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$18.51. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
In the last twelve months insiders purchased 7.50k shares for US$134k. But insiders sold 32.50k shares worth US$591k. Jeffrey Kripitz ditched 32.50k shares over the year. The average price per share was US$18.18. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Parke Bancorp better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Parke Bancorp insiders own 15% of the company, worth about US$32m. 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 Does This Data Suggest About Parke Bancorp Insiders?
The insider sales have outweighed the insider buying, at Parke Bancorp, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Parke Bancorp you should know about.
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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
