Don't Ignore The Insider Selling In Parke Bancorp

We'd be surprised if Parke Bancorp, Inc. (NASDAQ:PKBK) shareholders haven't noticed that the Independent Director, Jeffrey Kripitz, recently sold US$135k worth of stock at US$17.99 per share. However, the silver lining is that the sale only reduced their total holding by 2.5%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for Parke Bancorp

The Last 12 Months Of Insider Transactions At Parke Bancorp

Notably, that recent sale by Independent Director Jeffrey Kripitz was not the only time they sold Parke Bancorp shares this year. Earlier in the year, they fetched US$20.40 per share in a -US$204k sale. That means that an insider was selling shares at around the current price of US$18.80. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Happily, we note that in the last year insiders paid US$156k for 8.60k shares. But insiders sold 39.87k shares worth US$753k. All up, insiders sold more shares in Parke Bancorp than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Parke Bancorp better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Parke 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. Insiders own 15% of Parke Bancorp shares, worth about US$33m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Parke Bancorp Tell Us?

The insider sales have outweighed the insider buying, at Parke Bancorp, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Parke Bancorp. You'd be interested to know, that we found 2 warning signs for Parke Bancorp and we suggest you have a look.

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.