Potential RBB Bancorp (NASDAQ:RBB) shareholders may wish to note that the Independent Director, James W. Kao, recently bought US$120k worth of stock, paying US$17.08 for each share. Although the purchase only increased their holding by 1.3%, it is still a solid purchase in our view.

RBB Bancorp Insider Transactions Over The Last Year

Notably, that recent purchase by Independent Director James W. Kao was not the only time they bought RBB Bancorp shares this year. They previously made an even bigger purchase of US$562k worth of shares at a price of US$18.05 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$17.20). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months RBB Bancorp insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

RBB Bancorp is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of RBB Bancorp

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. RBB Bancorp insiders own about US$73m worth of shares. That equates to 23% of the company. 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 RBB Bancorp Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in RBB Bancorp shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for RBB Bancorp you should be aware of, and 1 of them shouldn't be ignored.

Of course RBB Bancorp 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 of direct interests only, but not derivative transactions or indirect interests.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com