Have Parke Bancorp Insiders Been Selling Stock?

Anyone interested in Parke Bancorp, Inc. (NASDAQ:PKBK) should probably be aware that the Independent Director, Jeffrey Kripitz, recently divested US$102k worth of shares in the company, at an average price of US$16.95 each. However, the silver lining is that the sale only reduced their total holding by 2.2%, so we're hesitant to read anything much into it, on its own.

Check out our latest analysis for Parke Bancorp

Parke Bancorp Insider Transactions Over The Last Year

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$19.60 per share in a -US$194k sale. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$16.45. So it is hard to draw any strong conclusion from it.

Happily, we note that in the last year insiders paid US$131k for 7.43k shares. But they sold 52.50k shares for US$925k. Jeffrey Kripitz sold a total of 52.50k shares over the year at an average price of US$17.62. 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!

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.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 12% of Parke Bancorp shares, worth about US$23m. 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 Parke Bancorp Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Parke Bancorp, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 2 warning signs for Parke Bancorp you should know about.

Of course Parke 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.

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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.