President of PCB Bancorp Picks Up 1.5% More Stock

Whilst it may not be a huge deal, we thought it was good to see that the PCB Bancorp (NASDAQ:PCB) President, Henry Kim, recently bought US$75k worth of stock, for US$20.35 per share. Although the purchase is not a big one, increasing their shareholding by only 1.5%, it can be interpreted as a good sign.

View our latest analysis for PCB Bancorp

PCB Bancorp Insider Transactions Over The Last Year

The Independent Director, Daniel Cho, made the biggest insider sale in the last 12 months. That single transaction was for US$462k worth of shares at a price of US$18.47 each. That means that even when the share price was below the current price of US$20.50, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 20% of Daniel Cho's holding. Daniel Cho was the only individual insider to sell shares in the last twelve months.

Over the last year, we can see that insiders have bought 90.77k shares worth US$1.5m. But insiders sold 25.00k shares worth US$462k. Overall, PCB Bancorp insiders were net buyers during the last year. The average buy price was around US$16.30. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does PCB Bancorp Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that PCB Bancorp insiders own 22% of the company, worth about US$64m. 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 PCB Bancorp Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at PCB Bancorp, in the last three months. But we take heart from prior transactions. And insiders do own shares. So we're not overly bothered by recent selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of PCB Bancorp.

But note: PCB Bancorp may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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