Don’t Ignore The Fact That This Insider Just Sold Some Shares In Opus Bank (NASDAQ:OPB)

Investors may wish to note that the Vice Chairman & Senior Chief Credit Officer of Opus Bank, Brian Fitzmaurice, recently netted US$54k from selling stock, receiving an average price of US$25.58. However we note that the sale only shrunk their holding by 6.4%.

See our latest analysis for Opus Bank

The Last 12 Months Of Insider Transactions At Opus Bank

Over the last year, we can see that the biggest insider sale was by the Executive VP & COO, Jennifer Simmons, for US$93k worth of shares, at about US$28.35 per share. So what is clear is that an insider saw fit to sell at around the current price of US$26.64. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn’t a major concern, though it’s hardly a good sign.

Opus Bank insiders didn’t buy any shares over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGS:OPB Recent Insider Trading, February 3rd 2020
NasdaqGS:OPB Recent Insider Trading, February 3rd 2020

I will like Opus Bank 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 of Opus Bank

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. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 5.2% of Opus Bank shares, worth about US$51m. 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 Do The Opus Bank Insider Transactions Indicate?

Insiders sold stock recently, but they haven’t been buying. And even if we look to the last year, we didn’t see any purchases. But it is good to see that Opus Bank is growing earnings. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’d think twice before buying! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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