Independent Director Jinho Doo Sold A Bunch Of Shares In Hope Bancorp

We'd be surprised if Hope Bancorp, Inc. (NASDAQ:HOPE) shareholders haven't noticed that the Independent Director, Jinho Doo, recently sold US$185k worth of stock at US$12.35 per share. In particular, we note that the sale equated to a 55% reduction in their position size, which doesn't exactly instill confidence.

View our latest analysis for Hope Bancorp

The Last 12 Months Of Insider Transactions At Hope Bancorp

In the last twelve months, the biggest single sale by an insider was when the Honorary Chairman of the Board, Steven Koh, sold US$349k worth of shares at a price of US$10.18 per share. That means that even when the share price was below the current price of US$12.22, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 1.0% of Steven Koh's holding.

Insiders in Hope Bancorp didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Hope Bancorp better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Hope Bancorp

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Hope Bancorp insiders own 4.9% of the company, worth about US$72m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Hope Bancorp Insiders?

Insiders sold Hope Bancorp shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. 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. In terms of investment risks, we've identified 1 warning sign with Hope Bancorp and understanding it should be part of your investment process.

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 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.