This Insider Has Just Sold Shares In OP Bancorp

Investors may wish to note that the Executive VP & Chief Lending Officer of Open Bank of OP Bancorp, Ki Won Yoon, recently netted US$98k from selling stock, receiving an average price of US$12.30. It wasn't a huge sale, but it did reduce their holding by 15%. This does not instill confidence.

View our latest analysis for OP Bancorp

OP Bancorp Insider Transactions Over The Last Year

Notably, that recent sale by Ki Won Yoon is the biggest insider sale of OP Bancorp shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$12.50, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 15% of Ki Won Yoon's holding.

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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does OP Bancorp Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. OP Bancorp insiders own about US$48m worth of shares. That equates to 26% of the company. 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 Do The OP Bancorp Insider Transactions Indicate?

An insider hasn't bought OP Bancorp stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing OP Bancorp. In terms of investment risks, we've identified 2 warning signs with OP Bancorp and understanding them should be part of your investment process.

Of course OP 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.

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.