Have Parke Bancorp Insiders Been Selling Stock?

We'd be surprised if Parke Bancorp, Inc. (NASDAQ:PKBK) shareholders haven't noticed that the Independent Director, Jeffrey Kripitz, recently sold US$228k worth of stock at US$22.77 per share. On the bright side, that sale was only 3.9% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Parke Bancorp

The Last 12 Months Of Insider Transactions At Parke Bancorp

In fact, the recent sale by Jeffrey Kripitz was the biggest sale of Parke Bancorp shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$23.55, 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. 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 3.9% of Jeffrey Kripitz's holding.

Happily, we note that in the last year insiders paid US$125k for 6.93k shares. But insiders sold 57.50k shares worth US$1.1m. In total, Parke Bancorp insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Parke Bancorp

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Parke Bancorp insiders own about US$31m worth of shares. That equates to 11% of the company. 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 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. While insiders do own shares, they don't own a heap, and they have been selling. 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Parke Bancorp.

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.

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.