Independent Director of RBB Bancorp James W. Kao Buys 1.7% More Shares

Investors who take an interest in RBB Bancorp (NASDAQ:RBB) should definitely note that the Independent Director, James W. Kao, recently paid US$17.26 per share to buy US$161k worth of the stock. Although the purchase only increased their holding by 1.7%, it is still a solid purchase in our view.

View our latest analysis for RBB Bancorp

RBB Bancorp Insider Transactions Over The Last Year

Notably, that recent purchase by Independent Director James W. Kao was not the only time they bought RBB Bancorp shares this year. They previously made an even bigger purchase of US$307k worth of shares at a price of US$16.98 per share. So it's clear an insider wanted to buy, at around the current price, which is US$17.50. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the RBB Bancorp insider decided to buy shares at close to current prices. James W. Kao was the only individual insider to buy during the last year.

James W. Kao bought a total of 44.00k shares over the year at an average price of US$17.01. 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!

RBB Bancorp is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of RBB Bancorp

Many investors like to check how much of a company is owned by 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. It appears that RBB Bancorp insiders own 24% of the company, worth about US$75m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About RBB Bancorp Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Insiders likely see value in RBB Bancorp shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - RBB Bancorp has 1 warning sign we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.