How Many Republic Bancorp, Inc. (NASDAQ:RBCA.A) Shares Did Insiders Buy, In The Last Year?

We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Republic Bancorp, Inc. (NASDAQ:RBCA.A).

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Republic Bancorp

Republic Bancorp Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Mark Vogt bought US$127k worth of shares at a price of US$31.89 per share. So it's clear an insider wanted to buy, at around the current price, which is US$39.25. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Republic Bancorp insiders decided to buy shares at close to current prices.

Over the last year, we can see that insiders have bought 11.00k shares worth US$353k. But insiders sold 2.40k shares worth US$84k. In total, Republic Bancorp insiders bought more than they sold 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!

Republic Bancorp is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Republic Bancorp Insiders Are Selling The Stock

Over the last three months, we've seen a bit of insider selling at Republic Bancorp. Executive VP and MD of Private & Business Banking Steven DeWeese sold US$52k worth of shares in that time. But US$38k was spent on buying, too, . While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.

Insider Ownership of Republic Bancorp

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Republic Bancorp insiders own about US$32m worth of shares. That equates to 3.9% of the company. 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 Republic Bancorp Insider Transactions Indicate?

Insider selling has just outweighed insider buying in the last three months. But the difference is small, and thus, not concerning. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Republic Bancorp insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Republic Bancorp. Case in point: We've spotted 2 warning signs for Republic Bancorp you should be aware of, and 1 of them is significant.

But note: Republic 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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